Performance Pay Model Transformation
Data-driven transformation of performance pay structures for a global engineering consultancy
Initial phase
Sensitivity analysis and scenario modeling
June 2023Second phase
Gap analysis and compensation adjustments
July 2024Overview
Led two distinct phases of performance pay model transformation for a global engineering consulting firm. The project combined detailed financial analysis with industry benchmarking to optimize compensation structures while ensuring financial sustainability.
Phase One: Model Optimization
Initial engagement focused on fine-tuning the client's new performance pay strategy through:
- Comprehensive sensitivity analysis of performance pay factors
- Scenario modeling for various business performance conditions
- Industry benchmark analysis for competitive positioning
- Financial impact assessment across different parameter combinations
Phase Two: Global Alignment
Follow-up engagement one year later centered on:
- Gap analysis against industry benchmarks
- Financial impact assessment of compensation adjustments
- Location-specific recommendations for various employee categories
- Implementation roadmap development
Technical Approach
- Developed complex financial models in Excel
- Utilized R for statistical analysis and visualization
- Created interactive dashboards for stakeholder communication
- Implemented automated reporting workflows