Case study: Better results through target and bonus agreements

1. Description of the initial situation

The company is an international provider of individualised and customised solutions in the field of laboratory technology. With locations all over Europe, it is one of the leading suppliers in this field. The previous situation of the sales department was mainly based on a system using fixed remuneration with the help of partly inconsistent target agreements. The goal was to find a target and bonus agreement that would make growth in all areas equally attractive for the company and its employees. It was therefore of utmost importance that theese procedures were explained and communicated in a well-founded and practical manner.

2. Goal of the client (biotech company)

The fact that a target and bonus agreement needed to be reached was not up to discussion. It was therefore no longer a question of whether such an agreement would be made, but rather how. There were few if any existing structures. This offers the advantage of free design options, but also carries the risk of an increased potential for conflict if a solution is found that is not satisfactory for all parties involved. The aim of the workshop was to find solutions for the necessary agreements.

3. Format for participants (on-site)

With regard to the format, it was decided to hold the workshop on site. The workshop was attended by representatives of all the departments involved as well as the persons authorised to make decisions. The workshop, scheduled for two days, was held in full interaction. Various aspects of bonification, provisioning and the possibilities and limits of performance-related payment models were discussed in order to finally reach a consensus on a result in an agreement.

4. Results and future prospects

The entire measure was evaluated by the Kitzmann Institute. The participants were also asked about their satisfaction and the biotechnology company carried out its own evaluation. In addition, the quality of the solution as well as its practical suitability were examined in successful use in real practice. The overall evaluation showed an excellent result and a complete success of the entire measure. The services of the Kitzmann Institute will be gladly used again for future measures.