How big data is saving bankers’ bonuses
Sat 19 Apr 2014
Information Age’s Ben Rossi discusses the impact of the EU’s new policy on bankers’ bonuses. He argues that big data holds the key to effective compensation plans. Based on ‘actual analysis and insight’, big data strategies will result in a more rewarding, flexible and intelligent bonus system for businesses and their employees. However, as Rossi points out, along with the benefits of adopting big data-based compensation plans there are also several challenges which companies need to face.
“A solid foundation of data is one of the best assets a business can have. If information it needs is swirling around in a murky pool of data, its compensation plans are more than likely based on intuition rather than facts, and audits will be a nightmare. It should ensure anyone who earns incentive compensation can trace every payment back to a particular behaviour or structured business event, as poorly managed incentive schemes are likely to drive poor employee behaviour.
Analysing big data is fast becoming a necessity for businesses seeking to get the most out of their compensation plans. The lessons learnt from it can help ensure an efficient and transparent plan for teams, and enable managers to target and end undesirable sales behaviour, while rewarding those who operate in-line with company objectives.”