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.Download a pdf of this case study
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.
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
Top five compensation planning features used
Configurable incentive compensation calculator
To calculate proration, absence management and bonus slices.
Custom alerts and guidelines
To empower and guide managers in line with corporate governance.
Flexible budget management and constraints
To manage multiple pay, incentives and promotion scenarios easily.
To simplify submission and approval processes for increased efficiency.
Compensation statement and letter generator
To quickly communicate pay to those who contribute the most to business.
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