BMO
"Knowing that we have a solid tool behind us to be able to accommodate changes that
we know are going to come in the future is fantastic."
 

Margot Cresswell

Program Delivery Manager, Bank of Montreal.

 

Multiple Compensation Cycles Streamlined into One Enterprise-Wide Cycle for 47,000 Bank Employees

Company Profile

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America with operations globally in Asia, Europe, and the Middle East. With total assets of $642 billion and 47,000 employees, BMO provides a broad range of personal and commercial banking, wealth management, and investment banking products and services to more than 12 million customers.

Business Challenge

“We’re a global bank, so the number of regulators that we have and the requirements that we have is fairly complex. Making sure that we have a tool that can streamline those solutions for us is paramount to everything that we do,” said Margot Cresswell, program delivery manager, Bank of Montreal.

In terms of complexity, BMO was running two compensation cycles per year and also had two separate reward cycles for the executive and non-executive populations during the company’s Fall cycle. BMO’s compensation plan set up included numerous custom field criteria such as cost centers, job code combinations, specific employee identifier criteria, as well as 17 different foreign exchange rates to manage.

To ensure 100 percent accuracy with incentive pay provisions, the compensation team was faced with extensive manual workarounds. Additionally, over the past decade, the sheer volume of bonus, stock and salary plans the company was managing had increased due to overall business requirements. Compensation plan complexity, and the fact that the compensation solution was being used for performance-related decisions as well caused the bank to start looking for a better solution.

PeopleFluent Solution Results

BMO’s history of trust and results with PeopleFluent’s Compensation solution enabled the company to scale. Leveraging PeopleFluent’s powerful capabilities BMO was able to merge all the base pay and variable compensation cycles into one enterprise-wide cycle for all 47,000 employees.

The PeopleFluent Compensation solution allows BMO to reduce manual workloads and errors. They also utilize embedded analytics and features like deferral grids for their discretionary compensation to facilitate deferral requirements across different levels in the organization.

“Knowing that we have a solid tool behind us to be able to accommodate changes that we know are going to come in the future is fantastic. It puts us at ease knowing that the tool can grow with us,” said Cresswell.

PeopleFluent Compensation has also enabled BMO to mitigate risks and focus on compensation strategy instead of details. BMO relies on PeopleFluent to make calculations based on various components, review how different targets and measures are overlaid, and provide the necessary audit and regulatory requirements needed.

Cresswell noted: “The use of the PeopleFluent Compensation tool in transforming how we do what we do on the compensation side of the house is paramount. Looking at the risk and complexity around our analytics and being able to simplify that is revolutionary.”

With PeopleFluent, BMO bank managers are now able to clearly understand how much they have to allocate towards variable pay, have greater visibility at spends versus allocations, and are better able to communicate to employees how their performance and compensation tie together.

“The tool really allows us to walk through the compensation cycle in greater ease, for instance, than if we were using spreadsheets for 47,000 employees. The time alone that we save in using the PeopleFluent tool is phenomenal,” added Cresswell.

Most importantly, BMO has been able to give time back to its managers. By using the simplified Compensation tool with data analytics and risk measures built in, managers are confident that they are making the right decisions for employees. It has also allowed them to spend more time with customers instead of focusing on back-end system components.

Bank of Montreal is powered by

Industry:

Financial Services

Headquarters:

Toronto, Ontario

Employees:

47,000

Challenge:

Inability to manage the complexity of compensation in various locations around the world

Need for improved accuracy with various calculations and compensation plans

Business Results

  • Increased visibility to meet audit and regulatory requirements
  • Reduced risk and human error
  • Increased focus on compensation strategy