How do we model a bonus scheme that includes special provisions for new joiners — people who have recently joined the company?
The company policy states that during the first 60 days, a person will receive a fixed percentage of their OTE. Beyond the 60 days, they qualify for the normal performance bonus, prorated accordingly.
Cycle Length = 6 months.
OTE = 12500
Complication: The 60-day window can span across 2 cycles.
Key variables:
| Variable | Definition |
|---|---|
| ES | Employee Start Date |
| CS | Cycle Start Date |
| CE | Cycle End Date |
| DSJS | Days Since Joining at Cycle Start |
| DSJE | Days Since Joining at Cycle End |
Component Formula:
New Joiner Bonus = (QualifyingDays / 60) × NewJoiner_OTE
The NewJoiner_OTE is calculated from the standard OTE using 33% of the value (2 out of the 6 months cycle). A dedicated OTE value should be used here to prevent the OTE from being adjusted by any Time on Territory adjustment group.
The QualifyingDays value is derived from the NewJoinerPayout function based on DaysSinceJoining(cycle_end).
QualifyingDays by scenario: