Functionality Description

Last Updated to June 2025

1. OVERALL DESCRIPTION

The beqom Solution is a software solution dedicated to the unified management of all compensation processes and of continuous performance. It enables Client to manage, on the Platform, business processes related to:

(a) Compensation, including (i) short term performance-based incentives such as commissions or bonus management, (ii) long term performance-based incentives such as shares, stock options or long-term cash incentives; (iii) salary reviews, benchmarking and pay bands modelling, pay equity, pay prediction, pay transparency and any kind of benefit and recognition programs; (iv) employee and managers dashboard view; and

(b) Continuous performance.

1.1. Compensation Management Solution

A single unified logic and a common approach governs the implementation of these processes by modelling the following components:

(a) Hierarchical relationships and populations (People Manager)

The beqom Solution integrates existing hierarchical people and organization structures, and allows the creation and modelling of additional hierarchy trees and assignments. In addition to hierarchies, populations can be defined based on any criteria and combination of attributes. These populations serve as the basis for eligibility and assignment to different compensation processes and plans.

The combination of hierarchy trees and populations determines which person will be visible to whom and can be assessed by whom e. g. the managers overseeing pay raises or allocation of stock options to payees.

(b) Compensation Processes (PROCESS Model Designer)

A compensation process is set-up to manage targets and achievements of incentive plans or allocate budgets according to corporate guidelines and approval processes across the organization.

It allows you to retrieve and manage data based on different performance indicators for a given group of people for defined periods.

Each compensation process, is typically defined by:

indicators; a set of key performance indicators which can be a combination of individual, team or group objectives, quantitative/qualitative targets, allocation fields, with free data entry options or linked to achievement rules and corporate guidelines;
rules; rules are used to evaluate individual, team or group objectives against compensation criteria during runtime. For each record in the database that meets the criteria, a calculation will be launched;
validity periods and repetition; each process is linked to a validity period. This period specifies the start date and end date of the process;
populations; a population is a group of people with common attributes. Population is built with filter based on single or multiple criteria (e.g. job, department, division, country). The assignment of populations to a process determines their eligibility to the plan;
workflow; workflows ensure that tasks are fulfilled in the right order, e. g. validation of targets set or achievements, evaluations, proposed pay raises or the allocation of bonuses and stock-options according to necessary approval steps;

Process flows guide users through all necessary process steps.

(c) Information Collection (DATA Manager)

For many processes the values corresponding to the indicators mentioned above do not exist in underlying information systems. The beqom Solution therefore enables the collection of any data directly in the compensation solution via grids, forms, and data entry masks, according to process steps, workflows and access rights.

(d) Rules Definition (RULES Engine)

The rule engine is one of the core components of the beqom Solution. Data gathered through different processes or uploads is processed to calculate achievement and compensation values considering multiple criteria set in rules engine.

Rules for earnings, payments, commission processes, budgetary allocation, exceptions and recommendations linked to salary review processes, bonus processes, and stock option grants, lapses, and exercises are defined with the rule editor and can be setup with free criteria selection and multiple algorithm definitions.

(e) Reporting & Analysis (ANALYSIS Workbench)

The beqom Solution includes a set of reporting and analysis instruments for standard and ad hoc reporting to analyse any information out of the compensation database on any aggregation level in real time. All kind of analysis can be derived using state of the art, integrated business intelligence tools – for individual, collective, management reporting, financial reporting, sales analysis, audit reporting, consolidated reports by country/division, actual vs, budget for bonus/salary increase, historical analysis or comparison, etc. Through these reports, each user can view information specific to his level within the organization in accordance with his profile. All analysis can be accessed through a web interface or exported for example via Excel pivot tables.

(f) Communication (INFO HUB Component)

The communication and notification capabilities allow managing all kind of personalized or collective information to all people inside or outside of an organization. Tasks, notifications, documents or reports, including corporate guidelines, bonus letters, payee total compensation statements, can be published and directed to all relevant populations or individuals with personalized information, and made accessible via web, mail or mobile devices.

(g) Simulation (SIMULATION Cockpit)

The beqom Solution enables to create, save, compare and publish simulation scenarios out of one screen according to different parameters set; associated rules and populations. For example, the cost of a compensation strategy for an individual or group of people in real time can be simulated and compared to other simulations. The result of the Compensation Simulation is shown in a graphical form in real time once the simulation has been launched. The result shows simulated values versus the originally stored compensation model and one or more saved simulation scenarios.

1.2. Continuous Performance Management Solution

The Continuous Performance Management solution enables Client to manage, on the Platform, Client business processes related to:

(a) Feedback such as giving and receiving real time feedback privately and publicly

(b) Agile Goal Setting including assigning company, personal and development goals

(d) Survey and coaching dashboards to provide personal insights.

2. SCOPES OVERVIEW

The Platform is organised around the following:

(a) beqom Engine, including simulation, modelling, budgeting, benchmarking and analysis; the beqom Engine is the baseline of, and is required for, the following Scopes (with optional add-ons such as Advanced Analytics and mobile apps):

Salary review
Bonus management
Long term incentive management
Sales incentive management
Benefits data management
Promotion management
Pay Predictor 1
Recognition 2

(b) Pay Equity

beqom allows you to manage the overall pay equity process including reporting and regression analysis on the same platform integrated with the compensation review process to effectively close the gap with remediation actions supported by a flexible advanced analytics solution

(c) Pay Transparency

beqom allows you to provide compensation information to your employees via the communication day functionality including statement generation and distribution plus digital statements. It also helps you towards achieving compliance with the range of pay transparency regulations being rolled out globally, including providing necessary pay equity information directly to your employees

(d) Benchmarking and Pay Bands Modelling

beqom allows you to manage the benchmarking process: import job matching between your job architecture and survey provider job codes, prepare your internal data to be submitted to each survey provider, import survey data from each provider and calculate employee compa-ratio based on market midpoint. You will also be able to build your pay ranges (import existing or calculate pay bands based on either internal data or external market data) to produce internal positioning withing each employee pay band

(e) Continuous Performance Management

beqom allows you to manage goal plan(s) with individual goals, where each goal is described by name, owner, goal type, weight, priority and tracking status. Results can be configured with measurement criteria such as description, unit (financial, percentage, numeric, binary), due date, start value, target value, result progress. Result progress percentages can be entered manually or calculated based on target and result

3. PLATFORM AND TECHNOLOGY COMPONENTS

(a) Platform components

Tenant Management
Passport (Compensation Management Scopes except Pay Equity Scope)
SSO Log-in (Performance Management and Pay Equity Scopes)
O365 Log-in (Performance Management Scope)
iOS and Android mobile application (Performance Management Scope)

(b) Technology components

Logging
Security
Performance Monitoring
Other Services (e.g. PowerBI, Datadog)
AI Components:
– Bring your own Model - Model Factory - hosting and training
– Pay Prediction Models - Run against populations to generated predicted pay
– LLM agents - designed prompts to support end user transactions

4. DESCRIPTION OF FUNCTIONALITIES

(a) Beqom Engine tool

Components:

Data Foundation - core worker data repository of compensation entities and fields
Organization and Hierarchy Management
Data Manager
Security Manager – Roles and Access Rights
Rules Engine
Analysis Workbench
Info Hub

(b) Salary Review

Manage a multi company, multi-division, multi-currency, multi-language application
Define cluster of employees
Analyse existing salary distribution (current and history) and benchmarks (internal and external)
Employee performance calibration
Set up of different merit increase policy
Simulate and optimize costs connected to the different scenarios
Manage management approval of proposed merit increase
Create merit salary increase employee letters
Export final salary data to core HR and/or payroll systems.

(c) Bonus Management

Manage a multi company, multi-division, multi-currency, multi-language application
Define specific cluster of employees
Set up compensation plans
Simulate the cost of plans versus budget
Manage communication to employees, create letters
Calculate bonus
Analyse and report
Export final bonus data to payroll system.

(d) Long Term Incentive

Manage a multi company, multi-division, multi-currency, multi-language application
Define cluster of employees
Define different LTI instruments, with vesting amounts and schedules
Create LTI campaign by cluster of employees
Link assignment to performance
Simulate and compare LTI cost with assigned budget
Calculate LTI employee earning and simulate based on current or future values entered
Analyse and report.

(e) Sales Incentive Management

Manage a multi company, multi division, multi-currency, multi-language application
Define specific cluster(s) of employees, dealers, agencies
Organization management
Set up alternative commission plans
Simulate commissions plan cost
Manage target setting
Manage sales performance
Calculate commissions
Undertake analyses and create standard reports
Export final bonus data to payroll system

(f) Benefits Data Management

Support a multi company, multi division, multi-currency, multi-language application
Define eligible populations
Define collaborative benefit approval and freezing process
Creation of benefit summary statements by population and by individual.

(g) Promotion Management

Build and launch your promotions process
Define cluster of employees
Define hierarchy and budget assigned to a promotions process
Manage management approval of proposed promotions
Create employee promotion letters
Define manager access presenting all the information they need to make objective decisions based on performance, potential, and the ambition of their people
Define employee access and manage employee career story
Export final promotion data to core HR and/or payroll systems.

(h) Pay Predictor

Generate datasets for model training purposes
Standardize datasets into model-ready formats
Define eligible populations
Build regression models for each eligible population
Train, deploy and run the models within beqom infrastructure
Publish and analyze the output of the regression models
Make recommendations available in compensation processes.

(i) Recognition

Allocate reward budgets
Configure recognition events to be rewarded
Manage event-based formulaic or discretionary rewards with approval workflow
Assign recognition awards
Manage consumption of reward budgets.

(j) Pay Equity

Calculate the gender pay gap and other demographic pay gaps based on numerical and categorical variables. The Solution enables the user to build models using a backward variable selection
Publish the results of the pay analysis
Propose pay raises in order to reduce the pay gap using a maximum and minimum pay raise per individual raise, based on the user’s preference. Proposals are based on budget only, fairness only, or a mixture of budget and fairness
Give an overview of the employees and the pay raises, both graphically and in a table
Give an overview of the cost of reducing the gender pay gap
Suggest salaries for new employees or employees who move into new positions
Compare salary information data sets
Give an overview of the salary structure and the gender distribution
Equity reporting
Pay equity analysis and insights.

(k) Pay Transparency

PDF documents can be uploaded from external sources for distribution through the Solution
Mapping of HRBP and Communication Manager is also uploaded into the Solution
Documents are sent through a configurable workflow which allows for the review and release of documents before they are viewed by the employee
Employee is notified and logs into the application to view their documents

(l) Pay Modelling and Benchmarking

Define survey providers, surveys and benchmarking plan
Mapping of HRBP and Communication Manager is also uploaded into the application
Configure plans: define the computation method (Blended with weight or by priority order)
Configure surveys that will be assigned to each plan
Create populations and assign plans to eligible populations
Configure Job matching to import Job matching file (mapping your job architecture with the survey provider job codes) into a mapping table
Generate your internal data to be submitted to each provider into a grid and export in Excel
Import survey data, applying standard column names
Produce market data computation at employee level and calculate employee compa-ratio
Define pay scales : select the criteria to be used to define the pay bands. The combination of the available values for each criteria will generate the pay bands code. One row by pay band code will be displayed in the pay band matrix where the user can model pay ranges based on reference (manual to import existing, internal data, market data), target pay point (median, average), adjustment %, currency
Final pay ranges are stored and can be displayed in the reports
Cost modelling simulation can be done on cost of scenario (such as cost to bring all employees below pay band mid to the min)

(m) Continuous Performance Management

Manage multi company, multi division, multi language performance review cycles
Reviews targeted to population, with configurable rating cycle, goal types and behaviors
Configurable stages of the performance cycle, manage moderation and release to employees
Give and receive feedback from anywhere in the organization
Define the goal structures including workflow, population, assignee management
Manage creation of goals for the organization during the goal-setting process
Measure goals with success criteria and quantifiable deliverables and track goal progress manually or automatically
Export relevant performance and goals data externally
Manage multi-country, multi-language support for 360 surveys

5. LANGUAGES

The below languages are available as a standard.

(a) Compensation Management Scopes, except Pay Equity Scope

English, German, French, Italian, Portuguese (Brazilian), Polish, Spanish, Chinese (simplified), Chinese (traditional, Taiwan), Russian, Turkish.

(b) Pay Equity Scope

English, German, French, Icelandic, Italian, Spanish, Swedish.

(c) Performance Management Scope

English, German, French, Italian, Portuguese (Portugal), Spanish, Chinese (simplified), Japanese.

1 The pay predictor module allows you to deliver a dynamic pay prediction recommendation and provides the ability to run compensation prediction scenario for merit increase, promotion, transfer, or new hires based on regression models.

2 The recognition module allows you to allocate reward budgets and configure recognition events, manage event-based formulaic or discretionary rewards, assign recognition awards and manage the consumption of reward budgets.