Sage Software

How Sage developed a simplified compensation system and bonus plan--and employees felt happier.

Company & Challenge

Sage Software is a global market leader for technology that helps small and medium business perform at their best. Sage is trusted by millions of customers worldwide to deliver the best cloud technology and support to manage finances, operations, and people.

In 2019, Sage’s reward team was stuck dealing with a complex matrix structure and backward-looking approach to handling their reward programs. From generic pay ranges and inconsistent grading, to a lack of transparency for managers and colleagues about reward calculations, Sage was ready for a transformation.

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Solution & Results

In 2020, Sage teamed up with PayScale (formerly CURO) to ensure they put their people first and make it easier for managers and executives to take control of fair pay and bonus decisions based on performance. In doing so, leadership developed a simplified compensation system and bonus plan, and employees felt happier and motivated by understanding how their work progress was reviewed and tracked.

Complete 11K+ employee reviews by 1,600 managers in 3 weeks

  • Capture pay, bonus, and LTIP recommendations for all employees
  • Calculate bonuses using “slices”
  • Redistribute £1.5M in bonuses more effectively and fairly
  • Realize and reallocate £366K in absence adjustments
  • Achieve £1.5M in cost savings
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It was a fantastic experience. Such a good idea to give the manager – who actually knows their team members – the
opportunity to fairly distribute the amounts. Payscale’s (formerly CURO) software is well thought out and brilliant.”

-Ralph Steward, Vice President of Rewards, Sage

Solution & Results

In 2020, Sage teamed up with PayScale (formerly CURO) to ensure they put their people first and make it easier for managers and executives to take control of fair pay and bonus decisions based on performance. In doing so, leadership developed a simplified compensation system and bonus plan, and employees felt happier and motivated by understanding how their work progress was reviewed and tracked.

Top five compensation planning features used

Configurable incentive compensation calculator
Custom alerts and guidelines
Flexible budget management and constraints
Automated workflows
Compensation statement and letter generator

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