Source | The Times Of India : By Namrata Singh & Rupali Mukherjee
Mumbai: It’s that time of the year when companies set goals for employees, which are linked to annual increments and bonuses. Over the years, organizations in IT, pharmaceutical, banking and financial sectors have made this process transparent, leaving little room for surprises. Today, startups are driving the change. Companies have begun clearly articulating the overall remuneration philosophy to make it more analytical so that employees know what they are due to receive in salary hikes, depending on the extent of individual accomplishments.
Hiring agencies said many Indian companies that provide the visibility to employees today fall in sectors like IT, pharma, financial shared services and private banks. Kamal Karanth, MD, Kelly Services & KellyOCG India, said, “Most of the companies do know the range of hikes the organization intends to give its top, middle and poor performers every year. There is always an increment range which managers work on every year. It is always good to communicate this to employees at the beginning of the year. This increases the credibility of the manager when the employee gets increments within that range.”
Marico follows a performance management system — ‘management by results’ — wherein the goal-setting process is highly participative and employees propose their goals based on the organizational and functional strategic thrust areas. “The underlying principle in defining each goal is that the member has a direct influence on the outcome and the goals and performance indicators are discussed and agreed with the supervisor and concerned stakeholders. So at the beginning of the year, there is a high degree of clarity in performance expectations and the measures that will be used to assess performance. As a result of this, members are themselves able to assess their performance at the end of the year,” said Ashutosh Telang, chief HR officer, Marico.
Indian companies are progressively getting more mature in their reward frameworks commonly shared and explained. Gaurav Bahadur, senior director – HR (India & South Asia), Sanofi, said managers and employees clearly define at the beginning of the year their business objectives and LEAD (Lead, Empower, Act, Deliver) competencies they will demonstrate and be measured for. This helps facilitate transparent appraisal discussions that are easier to have.
“To enable ease of administration, our performance system is managed through an online platform that is operated three times in the year, i.e. at the beginning of the year employees document the mutually agreed upon objectives, and then later the mid-year and year-end discussions. The formal mid-year appraisal review ensures that there are no surprises at the end of the year and that any streamlining that is required can be undertaken before it’s too late. The company’s internal tool ‘Madhyam’ helps facilitate a structured two-way dialogue process on performance as well as development,” said Bahadur.