Funding the Pool: Threshold, Target and Maximum
This lesson is part of the course
In this lesson
You weight three company KPIs into one achievement figure, read the funding % off a threshold–target–maximum curve by linear interpolation, size the target pool from the salary bill and fund it for the year.
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Lessons in this course
- Rating Distribution vs the Target Curve Locked
- Calibration: Z-Scores Within Each Manager Locked
- Relative Ranking: Percent Ranks and Rating Bands Locked
- Funding the Pool: Threshold, Target and Maximum Locked
- Individual Payouts: Salary × Target × Company Factor × Multiplier Locked
- Pro-Rating for Joiners, Leavers and Part-Timers Locked
- Fitting Payouts to the Budget: Scale, Round, Fix the Residual Locked
- Payout Summary: Cost vs Pool by Department and Fairness by Grade Locked