How DKV Mobility simplified their bonus structure by making the process digital

Rigid annual targets as the basis for calculating bonuses are outdated. With gradar, DKV Mobility was able to separate bonuses from individual targets and variable performance metrics, giving employees a share in the success of the company and creating the conditions for modern, digital and flexible performance management.

Clearly defined which group of employees was eligible for bonuses
Designed a more transparent, easy-to-understand bonus system
Ensured employees were placed in stronger positions for bonuses

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The Story

Every employee at DKV was entitled to a bonus with a variable share of between 5% and 20% based on individual targets documented in an Excel spreadsheet at the beginning of the year. Criteria for the different levels of target achievement between 70% - 130% were defined, with the achievement of the targets determining the bonus payment at the end of the year. They wanted to change this approach.

The Struggle

This process was very inflexible - and it was not clearly regulated how high the variable share was for the different groups of employees. The feedback from employees and managers was that it was becoming increasingly difficult to measure performance fairly for everyone - especially considering conflicting objectives. That’s where gradar was able to help improve the process.

The Strategy

All functions at DKV Mobility were assigned to a level from 1-25 using the standardised job evaluation procedure from gradar. The bonuses for employees were linked to financial targets of the DKV Group - using gradar’s compensation structuring feature and implementation support - in order to give them a share in the success of the company and strengthen cooperation.

The Solution

The functions of DKV employees were evaluated together with executives and reviewed by the works council. After the conclusion of the agreement, each employee received an individual letter explaining their level and how the new bonus was made transparent. Thanks to gradar, the bonus system is now much simpler and the process is more flexible and 100% digital!

DKV Mobility saw these results with gradar…

….and you can, too!

Simplified their bonus structure through digitisation

Delivered transparent pay and bonus data to employees

Linked compensation to internal company-specific targets

Bentje Gruenewald Team Manager, Compensation & HR Systems
DKV Mobility

“gradar helped us to structure our compensation schemes and this is the foundation for a state-of-the art performance management, equal pay, consistent career paths and having the right conversations around compensation with managers and employees. I’d recommend it to anyone who needs a solution for this!”

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