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Customer Case Study

     BRIDGEi2i helps shared services of a leading financial institution optimize cascading of annual
     merit increase budget based on performance.

     Business Challenge
     A large global shared srevices organization, of a leading European bank, was operating in markets with high wage
     inflation and demand for talent. They were keen to explore ways of optimal allocation of annual merit increase and
     variable compensation pool, to align with a performance driven culture while retaining critical performers and still
     remain competitive in the market for talent.

     BRIDGEi2i Solution
     BRIDGEi2i held brainstorming sessions with management and compensation teams to structure the problem. The
     need was structured under two broad category of solution:

     Optimize Annual Merit Based Increment Budget

            Baselined current levels of compensation relative to
             market benchmarks for each region and job role.
            Build rule to ensure increase help reduce gap from
                                                                                                                               Merit Increase Tool
             market, maintain competitive position and linked to                          Home          Rules & FAQ

             performance                                                              Job Level
                                                                                                                Average
                                                                                                                           New Median
                                                                                                                                           Optimised Optimised
                                                                                                                                                                Difference
                                                                                                                                                               from Market

            Built an optimisation model to identify annual merit
                                                                                                                increase                    Increase  Median
                                                                                                                                                               (Optimized)
                                                                          Team Manager                            8%       ₹   1,134,000     7.68%   ₹ 1,130,604   -7.45%

             increase % for each segment considering the rules            Assistant Vice President                8%       ₹   2,376,000     8.15%   ₹ 2,379,238   17.54%    Optimize!
                                                                                                                           ₹                         ₹ 701,092
             and constraints
                                                                          Senior Analyst / Process Supervisor     8%            700,164      8.14%                 -6.09%

                                                                          Analyst                                 8%       ₹    399,600      7.94%   ₹ 399,370     13.60%

            Provided a technology application, to enable
             compensation planning teams run various scenarios


     Variable Compensation Allocation across Functions

            Defined key performance indicators for assessing business performance
            Built a scoring mechanism to determine releative business performance
            Built a model to optimally allocate bonus pool, define bonus allocation rules based on business performance


     Business Impact
     Compensation & benefits team was able to quantitatively define guidelines for annual merit increase ensuring
     objectivity in allocation of annual increment pool, while meeting end busness objectives. Performance linked
     variable incentive allocation process, helped create a standardized and transparent mechanism, providing incentives
     for businesses to outperform each other. It also replaced a manual process which was long, rework prone and less
     transperant.

     About BRIDGEi2i
     BRIDGEi2i is an analytics solutions company partnering with businesses globally, helping them achieve accelerated
     outcome harnessing the power of data. BRIDGEi2i helps companies to BRIDGE the gap between INFORMATION,
     INSIGHT and IMPACT in their journey to institutionalize data driven decisions across the enterprise.



For more details contact us: enquiries@bridgei2i.com
                                                                                                         Information                                 Insight                 Impact
© BRIDGEi2i Analytics Solutions

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BRIDGEi2i Case Study - Optimized allocation of variable compensation

  • 1. Customer Case Study BRIDGEi2i helps shared services of a leading financial institution optimize cascading of annual merit increase budget based on performance. Business Challenge A large global shared srevices organization, of a leading European bank, was operating in markets with high wage inflation and demand for talent. They were keen to explore ways of optimal allocation of annual merit increase and variable compensation pool, to align with a performance driven culture while retaining critical performers and still remain competitive in the market for talent. BRIDGEi2i Solution BRIDGEi2i held brainstorming sessions with management and compensation teams to structure the problem. The need was structured under two broad category of solution: Optimize Annual Merit Based Increment Budget  Baselined current levels of compensation relative to market benchmarks for each region and job role.  Build rule to ensure increase help reduce gap from Merit Increase Tool market, maintain competitive position and linked to Home Rules & FAQ performance Job Level Average New Median Optimised Optimised Difference from Market  Built an optimisation model to identify annual merit increase Increase Median (Optimized) Team Manager 8% ₹ 1,134,000 7.68% ₹ 1,130,604 -7.45% increase % for each segment considering the rules Assistant Vice President 8% ₹ 2,376,000 8.15% ₹ 2,379,238 17.54% Optimize! ₹ ₹ 701,092 and constraints Senior Analyst / Process Supervisor 8% 700,164 8.14% -6.09% Analyst 8% ₹ 399,600 7.94% ₹ 399,370 13.60%  Provided a technology application, to enable compensation planning teams run various scenarios Variable Compensation Allocation across Functions  Defined key performance indicators for assessing business performance  Built a scoring mechanism to determine releative business performance  Built a model to optimally allocate bonus pool, define bonus allocation rules based on business performance Business Impact Compensation & benefits team was able to quantitatively define guidelines for annual merit increase ensuring objectivity in allocation of annual increment pool, while meeting end busness objectives. Performance linked variable incentive allocation process, helped create a standardized and transparent mechanism, providing incentives for businesses to outperform each other. It also replaced a manual process which was long, rework prone and less transperant. About BRIDGEi2i BRIDGEi2i is an analytics solutions company partnering with businesses globally, helping them achieve accelerated outcome harnessing the power of data. BRIDGEi2i helps companies to BRIDGE the gap between INFORMATION, INSIGHT and IMPACT in their journey to institutionalize data driven decisions across the enterprise. For more details contact us: enquiries@bridgei2i.com Information Insight Impact © BRIDGEi2i Analytics Solutions