Looking for a recommendation for an effective "pay for performance" variable compensation plan.

The presentation should provide with a variable pay plan design that will support the company (DDA's) business goals, organizational culture and desired employee behaviours.

She needs you to include the following in the recommendation presentation:

-An overview of how variable pay will benefit DDA

-The range of possible plan design choices to consider for DDA

-A recommended pay for performance approach including the performance cycle, eligibility criteria and measures to be rewarded

-A plan to communicate and administer the plan and at what cost.

As you will recall from your earlier work the 2020 results to date were showing a decline in revenue to less than 5% year over year growth, far lower than the planned 10% growth.This is still stronger than the actual 2019 year end results which were 3.5% year over year growth from 2018.The 2021 forecast is at 5% growth.

Recent key Corporate Performance results and forecast for next year ($million):

2017

2018

2019

2020 estimated

2021 forecast

Gross Revenue

$307.5

$338.3

$350.0

$367.5

$378.5

Operating Expenses

$30.0

$31.5

$33.1

$34.1

$35.3

Sales & Marketing

$236.5

$263.4

$271.8

$285.9

$294.6

Operating Income

$18.5

$19.8

$20.3

$21.9

$21.9

Client Accounts:

Existing

New

875

125

1,000

75

1,075

35

1,110

45

1,150

62

Employees

280

294

300

312

315

Total Payroll Cost

$22.5

$23.6

$24.8

$25.6

$26.7

Last year DDA introduced an initiative for all employees to have an informal 6 month and 1 year formal performance review assessment based on:

-job metrics to achieve business results and

-competencies - the desired behaviours -- associated with achieving the results.

This initiative was started senior levels and is slowly being implemented at levels or work.

The following 3 strategic drivers were communicated to all employees ahead of the next performance review cycle:

CUSTOMERS

PROCESSES

LONG-TERM GROWTH

Continuously evolving how we serve our customers by knowing them and anticipating their needs

Providing value based on products and services delivered through efficient processes

Being a growth oriented long-term investment

Present the layout in 20 slides