EXCLUSIVE: Deloitte switches bonuses to focus on staff performance

Under a new talent and reward strategy, Deloitte is changing its bonus structure to reward employees based on performance.

Previously, if it made a certain level of profits, a fixed amount was returned to staff as bonuses. But Stevan Rolls, UK head of HR, said this did not make close links between performance and reward.

“We wanted to be more equitable, saying that if we make more profits, we will be able to return that growth to our employees,” he said. “It is to make sure, for employees who are making an outstanding contribution, that the bonus is differentiated from the bonus they currently get. We want our reward strategy to recognise the contribution people make to the success of the firm.”

The new bonus structure is not set as a certain percentage of salary, but as a commitment to include all staff in the firm’s success. Employee surveys revealed that staff wanted a fairer share of the firm’s profits. Deloitte held individual meetings with line managers, followed by discussions with peer groups.

Rolls said: “Performance will be based on a number of objectives, and on the competencies, skills and
behaviours staff have shown in delivering those objectives.”

The new bonus structure was communicated via Deloitte’s intranet and through emails. It was also part of a roadshow that focused on the firm’s new talent and reward strategy.

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