Bonus 2023
This document defines the 2023 evaluation system for UNGUESS. Some key metrics for the company are described below, which are to be taken into account at all times for the purpose of proper performance appraisal. The system devised here ensures that these metrics are taken into account for everyone and an advance an advance bonus is disbursed where due. The system does not exclude that each individual/manager may take a special moment, even several times within the established window, to organise structured reviews.
The proposal aim to maintain a fair degree of managerial autonomy with regard to one's own system of objectives and KPIs, and to the evaluation system used. In fact, it will be up to each manager, together with the people, to define the evaluation system or to modify it. In addition to the area-specific component, there will be a link to business/cultural elements or soft skills.
COMPANY METRICS
- Ordered (Closed Deals): all orders entered in CRM
- Processed (Revenue): how much of the orders are actually processed, as formalised in the official management reports (e.g. a customer may order 100k of business, but in one month only execute part of it)
- Gross Margin: this refers to the so-called 1st margin, which considers in terms of direct costs only the payback to crowd including TL/TR/TA/T* and the payback to UXR and other external researchers; the costs of internal T&M, OPS and UXR resources are not considered
- EBITDA cash pre-bonus: this is the management's calculation of EBITDA without taking into account capitalisations, revenues other than testing, tax credits and the impact of bonuses; extraordinary one-off costs are to be excluded or normalised
COMPANY TRIGGER
Each area with its own work can have an impact, directly or indirectly, on four distinct metrics, which represent the pillars of corporate performance and which will allow us to verify whether or not the target from the budget (and also from the business plan) has been reached.
Before going into the metrics and weights for each area, it is important to introduce the concept of company triggers: individual assessment is only possible when two separate triggers concerning revenue and gross margin are exceeded.
- TRIGGER REVENUE: the annual final result of REVENUE will have to reach at least 70% of the target, which corresponds to about 5.8m€, corresponding to a 17% growth vs revenue 2022
- TRIGGER GROSS MARGIN: the annual final result of the gross margin will have to reach at least 60% marginality, compared to a 68-70% target for 2023; the marginality range is expected to better manage the mix between QA, EXP and Cyber
- The triggers also apply to Quarter/Half Year results (see BONUS PRIORITY TIMES)
- If company performance does not meet the conditions of both triggers, individual bonuses will NOT be paid (subject to the Special Bonuses below)
- If the triggers are unlocked but 100% of the Target is not reached or exceeded, then a proportional recalculation will be applied, which in some cases may also generate an over-performance (over-performance is not parametric by default, but may follow interval increment logic, e.g. +5-10% on the lump sum bonus). Please refer to your manager for individual targets.
SPECIAL BONUSES
Special bonuses, even in derogation of triggers, can still be assessed. An internal remuneration committee (consisting of the leadership team and Karen) is established under the proposal of the relevant manager.
INDIVIDUAL OBJECTIVES
Individual objectives should align with the four main corporate parameters. As a guide for managers in assigning individual objectives, the following table shows the weighting of the corporate parameters on the various areas. ----The weight in the table is indicative, and managers will define the detailed mechanics in accordance with the parameters below ----1 This field can have different interpretations, but it is essentially a metric that allows for alignment with the area, cultural, qualitative and soft skills. See the example below the table for reference
2 This field provides suggestions for managers to follow when setting individual goals
| Qualitative/discretionary/team-based/soft skills1 | Company parameters to be in aligned with2 | Note | |
|---|---|---|---|
| Sales people | ~15% | ~85% Closed Deals | Already in place a reward system in harmony with these parameters |
| Marketing people | ~30% | ~70% Closed Deals | Already in place a reward system based on Lead Generation, Inbound, Deal from MKTG in harmony with the parameter of Closed Deals |
| CSM people | ~20% | ~80% Revenue & Closed Deals | Already in place a reward system in harmony with these parameters |
| Community people | ~50% | ~50% Revenue & Gross Margin | |
| Tech people | ~70% | ~30% Revenue | Tech People's assessment is by nature of the role highly qualitative (it is a market best practice). At the same time, however, the roadmap must be strongly focused on business metrics and, in particular, Revenue generation |
| Ops people | ~20% | ~80% Revenue & Gross Margin | |
| AFC & HR people | ~40% | ~60% EBITDA |
E.g. a salesperson who closes 120% of his target may not receive the 120% bonus if he has achieved that individual result by causing difficulties to other sales or csm or other teams (e.g. by closing contracts that do not meet the minimum marginality and feasibility requirements). This element must be taken into account in the final sales evaluation.
IBI: it is conceivable/usable, for the areas that have benefited in the past year, it is conceivable and usable to use the IBI for qualitative assessment.
TIMING OF BONUS ADVANCE
As agreed and requested by the managers of the individual areas, the timing of bonus advances will be defined as follows:
Proposed timing for Sales people, CSM people and Marketing people: Quarter (advance 50%);
Proposed timing for all others: H1.
Q4 is calculated on FY by Q1 2024;
H2 is calculated on FY by Q1 2024.
At the end of the year, in case of negative performance or in case of resignation/layoff, the return of all that was received as an advance will be assessed (via remuneration committee).