How the leading sporting goods retailer successfully reduced by 80% the time devoted to managing variable remunerations
THE CHALLENGE
Every month, each of the 6,744 Decathlon Italy collaborators receives a bonus based on the performance of the store in which they work.
The ultimate goal of such bonus is to reward each worker’s autonomy and responsibility to reach a common shared goal.
However, processing and distributing such bonus showed
remarkable weaknesses:
- Opportunity cost
Many resources were required locally for calculating and manually checking bonuses, and such resources were systematically taken from some key activities such as customer satisfaction. - Security
Since spreadsheets were systematically used, the chances of making important mistakes were high, and the traceability and security that are essential in auditing were also hindered. - Problems managing some peculiarities of the staff organisation
Each time a collaborator was assigned a different task and/or sent to a different store, expensive calculations of the bonuses corresponding to two periods- before and after the change- were required. Similar difficulties also arose when the bonuses for newly hired personnel had to be calculated, as this should be done after the resource’s initial on-boarding period was completed.
