Case Study: DKV Mobility

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.

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.

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 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!