Bancolombia, a leading Latin American financial group with 25 million leading customers that set trends, presented four important technological challenges within its internal organization:
- The process was executed on spreadsheets, which consumed a lot of time with a margin of error.
- Adjustments or changes in the compensation process consumed a lot of time and did not allow for the traceability of changes made to the structure.
- To ensure the necessary resources for bond settlement, Bancolombia required a payment provision process for the next periods to be settled, but this provision did not have the ideal mechanisms and inputs to make a more accurate calculation.
- Reduce the time it took to perform the 'Chess process', normally performed by teams of up to 8 people.
Bancolombia faced the challenge of manually calculating the variable compensation process for its 22,000 employees.
The departments calculated commissions through a Model Code with a total of 115 possible codes, where an employee could move to different positions linked to these codes. This process was prone to error as it was done manually.
The start of the settlement calculation process involved the assignment of a key code, determined by various factors such as position changes, tenure, scheme, and payment frequency, among others. This code assignment posed a significant challenge because it required the collection of data through various systems. All of this was captured in an Excel sheet; from the type of data entered, to data that was not visible during the process, making it prone to errors.
This process was made possible with Blitz®, through integrations with its systems, thus eliminating manual data capture. Additionally, validations and locks were included, which allowed administrators to identify specific cases that deviated from the expected behavior, which could be approved or rejected as appropriate.
In addition, the compensation area team consisted of approximately 6 to 8 people, who divided the groups of employees for whom they had to calculate the commissions. However, this business logic made the compensations of employees calculated by certain settlement analysts have payment crosses between them, making it prone to duplicating data and generating errors.
To reduce the time spent in performing these calculations manually and eliminate errors, a variable compensation structure was designed for the various models available for employees who were part of the Commercial, General Direction, FIC and Nequi payrolls.
The design of this structure allowed for traceability records of any changes made to the scheme or structure, providing tools for audit processes, and thus ensuring good practices in compensation management.
Blitz® also needed to be integrated with its systems to facilitate secure information transfer and to reduce the time and number of errors in the process execution.
The design of this entire compensation structure was divided into 3 phases:
Phase 1.
The settlement of the First Quarter 2022 was carried out through Blitz®. This first quarter included around 10,000 Commercial employees (account statement).
Phase 2.
This included the settlement of the Second Quarter 2022 for Commercial Models and FIC (both quarterly and semi-annually), with a total of 13,400 payments made without errors.
Phase 3.
Access to Blitz® was guaranteed to the 22,000 employees of Bancolombia, giving them the ability to view the detail and tracking of their bonuses.
With Blitz®, an intuitive technological platform, implemented remotely, the commission team saves valuable time and can handle the process without depending on other areas.
