8 Ways Your Property Management Business Has Outgrown Quickbooks
When your bonus programs have outgrown spreadsheets,...When your bonus programs have outgrown...
Transcript of When your bonus programs have outgrown spreadsheets,...When your bonus programs have outgrown...
When your bonus programs have outgrown spreadsheets,
FlexComp Makes it Easy to Implement Accurate, Effective Incentive Programs.
It’s time for FlexCompTM
There's no doubt that performance-related pay motivates employees and keeps them better focused on achieving business goals. Whether you want to drive greater sales or profitability, ensure that deadlines are met, or improve specific behaviors, study after study demonstrates that clear goals, coupled with monetary rewards, is the answer.
FlexComp, part of the purpose-built TalentComp HR platform by CWS Software, is the most efficient way to implement these kinds of programs fairly and accurately. Best of all, this standalone compensation management system is intuitive to use and gives you complete flexibility in setting the criteria and measurement methods that work for you.
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TM
The FlexComp™ Cycle
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1. Develop Bonus Plans
A FlexComp cycle can be done annually, semi-annually, quarterly or monthly. But whatever the period, the same 6 steps are followed *:
The process begins with designing the Bonus Plans. For each
one, how will the weights of each component be distributed?
For example, 20% Corporate, 30% Divisional and 50%
Individual? Or maybe 100% Individual goals. How are you going
to score it? Do just enter a score, like 95%? Or maybe select it
from a dropdown list, like “did not achieve”, “achieved”,
“exceeded.” Or look it up in a table? Bonus Programs can have
predefined goals like “10% is based on achieving Company
Revenue goal of $12MM.” in which case everyone in that Bonus
Program will get that goal.
2. Enter Goals Upload a spreadsheet with each employee, who their manager is, what Bonus Program they are in and what their target bonus
amount is. The managers (and maybe the employees) log in, see the predefined goals and maybe enter some additional ones.
The program is so intuitive that no training is required. Administrators have full visibility into the process. They can drill down into
any manager or employee. They know who hasn't completed their tasks and can send reminders. Once goals are approved, they
become read only.
3. Record Noteworthy EventsThroughout the cycle, managers and employees can enter Noteworthy® comments such as “passed exam,” “closed a new
customer” or “late again ☹,” as well as upload attachments that might aid in scoring later. No chit chat here, please. Noteworthy
™ comments only.
4. Enter AchievementsWhen the period ends, managers input achievements, and FlexComp calculates payouts based upon the rules. Administrators
have full visibility into the process. They can drill down into any manager or employee. They know who hasn't completed their
tasks and can send reminders.
5. Communicate ResultsOnce final approval occurs, everything is made read only. FlexComp generates personalized comp statements for each employee
and a feed is sent to payroll.
6. Archive and ClearThe administrator then archives the results to the history file where it can be viewed and reported upon. The goals can then either
be cleared out or carried forward to the next period. The next cycle is ready to begin … time to develop the Bonus Plans for next
period!
* In some cases, not all steps are required. For example, Noteworthy events are not always entered.
TheFlexComp
Cycle
EnterAchievements
Communicate Results
RecordNoteworthy
Events
Enter Goals
DevelopBonusPlans
Archiveand Clear
The sky is the limit—you can develop as many distinct bonus programs as your divisions and positions require, each with an
unlimited number of weighted bonus components. FlexComp also makes it easy to prorate new employees' bonus amounts,
as well as calculate bonuses for anyone who has changed positions during the year.
For example, a typical bonus program might include components based on the company's performance, as well as the
employee's division and personal achievements.
FlexComp offers tremendous flexibility in how you score each goal. For example, you might score Company Performance
based on overall earnings in a lookup table.
Create Unlimited Bonus Programs
Sample Bonus Program
COMPONENT
Company Company Performance 20 % 110 %
Division Division Performance 50 % 105 %
SMART S.M.A.R.T. GOALS 30 % indiv
WEIGHT SCORE
50%
CompanyDivisionSMART
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FROM TO PERCENTAGE
0 3.4MM 0 %
3.4MM 3.8MM 85%
3.8MM 4.2MM 100%
4.2MM 4.4MM 110%
4.4MM 10MM 120%
EDIT DELETE
Division Performance might be based on sales using an Excel formula, with no cap on bonuses for a truly spectacular year.
Individual Performance is often tied to whether an employee has met their own S.M.A.R.T. goals. You can input achievements
using a dropdown list.
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Formula Name Division Revenue
Division =IF(@Achieve<10,0,100%+(@Achieve-10)*5/100)
DESCRIPTION PERCENTAGE
Did not meet 0 %
Met Expectation 100 %
Exceeded 115 %
Far exceeded 150 %
EDIT DELETE
ACHIEVEMENT PAYOUT
Far exceeded 150.00%
100.00%
100.00%Met Expectation
Did not meetMet ExpectationExceededFar exceeded
ACHIEVEMENT
For each $1MM over $10 MM
0%Sales < $10 MM
100%Sales = $10 MM
+ 5% / MM
SCORE
Now that goals are entered and are read only, any Noteworthy events are recorded to aid in scoring at the end of the period.
These are comments such as “passed exam,” “closed a new customer” or “late again ☹” No chit chat here, please. Noteworthy
comments only. Attachments can also be uploaded that might aid in scoring later.
In this example, the employee's individual performance is weighted at 30%—ideal for breaking down into three equally or
differently weighted goals.
30 % S.M.A.R.T. GOALS
WEIGHT GOAL DESCRIPTION
+ ADD + Pick from Goals Library
10.00%
10.00%
10.00%
Deliver a minimum of $200K cost savings this year
Issue Request for Quotations and obtain bids by September 1
Turn in all monthly report on time
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Once Goals are approved, they are made read only. After that, Noteworthy comments are entered.
10.00%
10.00%
Issue Request For Quotations and obtain bids by September 1
Received bid from Ajax Distributors today 01/12 2:24 PMMICHAEL BOMBATA
December report was late. Michael was sick all week, so I'll let it slide this time. 01/12 2:30 PMERIC BATCHER
Received bid from Aloha Partners today 01/12 2:25 PMMICHAEL BOMBATA
Turn in all monthly reports on time
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Once all achievements have been entered, FlexComp calculates the final score based on a weighted average of the scores.
Enter Achievements and FlexComp Calculates Final Scores and Payouts in a Snap
WEIGHT
Michael Bombata
20 % Company Performance
50 % Division Performance
30 % S.M.A.R.T. GOALS +ADD + Pick from Goals Library
Company Performance 110.00%
Division Performance 105.00%
S.M.A.R.T. GOALS Score 116.67 %
Total Score 109.50 %
GOAL DESCRIPTION
20 % Score based on EBITA between $3.4MM and $4.4MM = Achieved 4.3MM
WEIGHT GOAL DESCRIPTION
WEIGHT GOAL DESCRIPTION COMMENT ACHIEVEMENTS PAYOUT
50 % Sales of $10 MM. 0 for less, 5% Accelerator for more.- Achieved $11 MM.
10 % Deliver a minimum of $200K cost savings this year
10 % Issue Request For Quotations and obtain bids by September 1
10 % Turn in all monthly reports on time
Sample Bonus Program01/01/20 - 12/31/20
Click for details Annual Grid
Far exceeded
Met expectations
Met expectations
150.00%
100.00%
100.00%
Next, FlexComp applies individual scores to determine each employee's payout. If the target bonus in our example is $8,000,
this employee has a score of 109.50 %, resulting in a payout of $8,760.00. You can even set up FlexComp to round payout
amounts. You can get a grid view of the results if you want.
TARGET BONUS
8,000.00 20 % Score based on EBITA between $3.4MM and $4.4MM = Achieved 4.3MM
SMART Ratings FE
ME
ME
110.00%
105.00%
150.00%
100.00%
100.00%
109.50%
1,760.00
4,200.00
1,200.00
800.00
800.00
8,760.00
SMART Ratings
SMART Ratings
Sales of $10 MM. 0 for less, 5% Accelerator for more.- Achieved $11 MM.
Deliver a minimum of $200K cost savings this year
Issue Request For Quotations and obtain bids by September 1
Turn in all monthly reports on time
TOTAL
8,000.00 50 %
8,000.00
8,000.00
10 %
8,000.00 10 %
8,000.00 100 %
10 %
WEIGHT GOAL WHERE SCORE TARGET ACHIEVEMENT SCORE3 PAYOUT
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Generating Personalized Comp Statements
Comp StatementSample Bonus Program
20% Company Performance - Score: 110.00%
01/01/20 - 12/31/20
FlexComp automatically generates personalized comp statements that include as much detail as you desire, or you can
trigger emails requesting that employees sign into your secure portal to view the results. Comp statements provide an
opportunity to offer transparency into the decision-making process, recap goals and performance, and let team members
know exactly when they will receive their bonus payouts.
The Final Steps: Payroll and Recordkeeping
FlexComp payroll data is fully configurable to match any payroll vendor you use, with output in an Excel or CSV file. You can
have final bonus data ready for payroll in no time.
Once you've locked down the bonus cycle, FlexComp helps you archive records, with PDFs automatically saved to each
employee’s history. You can decide whether you want goals and comments to be retained or cleared out so you can start
fresh. After all, FlexComp is designed from start to finish to support you.
Michael Bombata TARGET BONUS AMT.
WEIGHT GOALS ACHIEVEMENT SCORE
FINAL SCORE PAYOUT
Quality Engineer $8,000.00
20% Score based on EBITA between $3.4mm and $4.4MM 4.3MM 110.00%
50% Division Performance - Score: 105.00%
WEIGHT GOALS ACHIEVEMENT SCORE
50% Sales of $10 MM. 0 for less. 5% Accelerator for more. $11 MM 105.00%
WEIGHT GOALS ACHIEVEMENT SCORE
10% Deliver a minimum of $200K cost savings this year. Far exceeded 150 %
10% Issue Request For Quotation and obtain bids by Sept. 1 Met expectains
Met expectains
100 %
10% Turn in all monthly reports on time 100 %
$109.50 % $8,760.00
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Take a Closer Look
Expect more from your incentive programs. Drive greater performance while simplifying the process with FlexComp. You'll be
surprised at how cost-effective and easy it can be to transition away from spreadsheets.
Visit CWS-Software.com/FlexComp to learn more and sign up for a demo now.
www.cws-software.com
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