Deloitte executives receive variable pay in the form of an end-of-year bonus. The bonus amount depends on several factors, such as the company’s performance, the department, and the employee. This variability makes budget allocation a complex administrative matter.
Each division manager determines the amount he wants to allocate to the people on his team and adds information about their pay and career path. Due to the autonomy of the departments, this process was not standardized. Each business unit applied its own criteria. Discussing and adjusting the proposals by top management took a lot of time.
Teal Partners built a tool that simplified the administrative process and introduced a degree of standardization. The managers used to write down the proposals in Excel files, which were then merged at a higher level for approval. Entering the amounts via the tool we build saves them a lot of time and the process is less prone to errors.
The tool provides the managers with objective parameters for allocating the amounts. A weighting mechanism allows the manager to make decisions about budgets in a structured, clear manner. This increases transparency and shortens the approval process.
Deloitte is a leading global audit and assurance provider, consulting financial advice, risk advice, tax, and related services. The company was founded in 1845 and today employs 312,000 people in 150 countries. It belongs to the top of the consultancy companies worldwide.
Deloitte wanted to revise the system that determines how annual bonuses for executives are awarded. The challenge was to get a grip on the complex administrative process and achieve standardization in allocating amounts, with respect for the departments’ individuality and autonomy.
Deloitte contacted Teal Partners to build a tool that would meet the high-quality standards Deloitte prides itself on. The tool would handle the administrative follow-up of bonus distribution of 4000 employees and count about a hundred users.
Deloitte sets the bar high. The company is known for its pursuit of excellence and aims for the very best for its customers. The consultants are top in their field. This aim translates into a company with high digital maturity and clear processes for transformation projects.
To ensure that the project was supported internally in the company, Deloitte started a preliminary process. After gathering information from managers about what such a tool would ideally look like and what features they wanted, Teal Partners built an interactive prototype.
Teal Partners was our partner as of day one. They were an integral part of a very successful project, that made a material impact on our business operations.
While Deloitte collected feedback, Teal Partners translated the wishes and requirements into functionalities. Development went smoothly, with short feedback rounds. From the start, our team paid attention to aspects of the tool that were not purely functional, such as branding, appearance, privacy, and security. There was also permanent consultation on these aspects.
The tool’s delivery deadline was well before the planned first use, so there was room for thorough testing. The testing itself went smoothly thanks to the calibrated processes that Deloitte uses. All this effort ensured that there were hardly any issues that needed to be adjusted when the employees started using the tool.
“Automating the end-of-year bonus award process has saved us time,” says Inge Diels, Managing Partner Talent at Deloitte. “We now spend that time talking to the people who receive the bonus. Automation thus led to a deepening of human contact, and that is exactly what we were aiming for.”
“User-friendliness was a basic requirement for this tool, which is used by our senior managers. Another important requirement was for the complex calculations under the hood to be instantly translated into clear visualizations. Teal Partners is familiar with complex payroll environments. They can provide strong references. That is why we teamed up with them.”
“Teal Partners gave us the feeling that we were always in the center of their attention. We were charmed by the team and the solution focus that characterizes Teal Partners. We sat at the table as partners. The project was completed on time and within the set budget. Teal Partners has proven to be completely worthy of our trust. The team has built a solid trust dividend.”
As the users were involved from day one, the tool has been accepted without any problems. The users appreciate the speed, precision and efficiency of the tool to which they have contributed substantively.
The administrative process is much easier. This results in significant time savings for top management. The export of the data to SAP is on point. The tool makes the process more efficient and less error-prone and allows for standardized distribution of amounts.
Just like us, Deloitte attaches great importance to quality. The goal was clear, the timing realistic and the requirements crystal clear. From day one, the focus was on change management so that user acceptance was high. The company’s digital maturity ensured that the collaboration ran smoothly.
A weighting mechanism determines, according to objective criteria, how often an employee receives the standard bonus. The managers inform employees individually of the amount they receive. The standardization allows managers to explain transparently how they landed at that amount.
Although the project started during the corona pandemic, the collaboration went very smoothly. The tool was up and running in less than nine months. After delivery, hardly anything had to be changed: the list of change requests was limited. This indicates that the tool was well prepared and built.
Deloitte and Teal Partners are currently looking at how the tool can integrate with other HR processes, for example, when determining salary increases.
