Definition

• The Percentile function calculates the relative standing of a value within a dataset by determining the percentage of values that fall below it, expressed as a percentile score from 0 to 100.

Purpose

• Provides proportional performance assessment that shows where an individual stands relative to their peer group, enabling balanced reward distribution across performance ranges.

How it works

• Takes all values for a specific KPI or component within the defined scope (typically team level)
• Calculates what percentage of the group performed below each individual's level
• Returns percentile scores (e.g., 90th percentile = performed better than 90% of colleagues)

Input

• Raw performance values (e.g., Sales vs Target percentages, absolute sales figures, custom KPI values)

Output

• Percentile scores (0-100, where higher numbers indicate better relative performance)

Scope

• Applied at the team level - percentiles are calculated among all positions within the same team for the specific bonus scheme

Use Cases

• Ensuring balanced reward distribution across teams regardless of absolute performance levels
• Creating proportional bonus structures (e.g., top 20%, middle 60%, bottom 20%)
• Situations where you want smooth, graduated rewards rather than clear winner-takes-all hierarchies

Example Application

• A team of 5 sales representatives with Sales vs Target achievements of 120%, 105%, 98%, 87%, and 110% would receive percentile scores of 100th, 60th, 40th, 0th, and 80th percentile respectively.