Tutorvo

Fitting Payouts to the Budget: Scale, Round, Fix the Residual

Lesson 7 of 816 minLab

This lesson is part of the course

In this lesson

You scale uncapped payouts down to the funded pool with one factor, round each payout to whole currency units, measure the rounding residual and hand it to the largest payout so the total matches the pool to the unit.

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Lessons in this course

  1. Rating Distribution vs the Target CurveLab15 min Locked
  2. Calibration: Z-Scores Within Each ManagerLab17 min Locked
  3. Relative Ranking: Percent Ranks and Rating BandsLab16 min Locked
  4. Funding the Pool: Threshold, Target and MaximumLab17 min Locked
  5. Individual Payouts: Salary × Target × Company Factor × MultiplierLab16 min Locked
  6. Pro-Rating for Joiners, Leavers and Part-TimersLab17 min Locked
  7. Fitting Payouts to the Budget: Scale, Round, Fix the ResidualLab16 min Locked
  8. Payout Summary: Cost vs Pool by Department and Fairness by GradeLab18 min Locked