How to link performance appraisal with salary and bonus?

Guests: Jiang Xinghua, manager of human resources department of China Aokang Group, and Shi Guifen, director of human resources department of Dongfang Communication Co., Ltd. Case: The first-line department of Dayun Industry and Trade Co., Ltd. has recently implemented responsibility contracting, and the result of the first-line department contracting is that the organs and logistics personnel have changed from the previous leading departments to service departments. An important purpose of Dayun Industry & Trade Co., Ltd. to separate front-line from logistics is to link performance with reward. Companies that treat organs and logistics personnel adopt strict performance appraisal methods, and directly link the assessment results with the year-end salary and bonus, hoping to mobilize the enthusiasm and service attitude of organs and logistics personnel. After the announcement of the evaluation scheme, the work style of the organs and logistics personnel did change, but the problem followed: almost every organ and logistics personnel were "excellent" in the performance evaluation at the end of the year, so that not only the organs and logistics personnel got high salary and bonus distribution, but also the front-line departments were very dissatisfied with this result. They express their complaints with words like "We fight in front and you count the money in the back". The company attached great importance to this, and instructed the newly appointed human resources manager Mai Wenqiang to re-formulate the performance pay system for the company's organs and logistics personnel, and made it clear that there should be a "gap" in the assessment of organs and logistics personnel, the proportion of "excellent" should not exceed 25%, and there should be a certain number of "poor" personnel. After receiving the task, Mai began to re-evaluate the performance appraisal of the organs and logistics personnel. One of the main reasons why he found the organs and logistics personnel "excellent" was the supervisors of these departments. The company implements two-way evaluation of employees and supervisors for organs and logistics personnel, that is, employees' evaluation of supervisors' poor performance will affect supervisors' scores, and supervisors' evaluation of employees' poor performance will also affect supervisors themselves. Because the number of "poor" subordinates will affect the performance score of the supervisor, the supervisor always gives his subordinates high marks, which also shows that his department is very successful. In order to solve this problem, Mai Wenqiang conveyed the company's performance indicators to the heads of various departments, but they immediately met with unanimous resistance. It is unfair for them to insist that their subordinates are already excellent. In the face of uncooperative supervisors, Mai had to ask the human resources department to make a comprehensive evaluation of the organs and logistics personnel according to an employee questionnaire and their quality status table, extract "excellent" and "poor" candidates according to the evaluation results, and publish the evaluation results according to the results. "It was a disaster," Mai Wenqiang recalled. Almost all people with low scores flocked to the HR department for questioning and asked them to give a reason. Actually, a model worker elder sister fainted in the HR department. Mai Wenqiang was unanimously criticized from top to bottom. Facing the accusation, Mai Wenqiang had to admit that the human resources department had made a mistake. After reporting to his superiors, he had to explain to everyone that this assessment is only a job evaluation, not a basis for salary and bonus distribution, but to improve the company's work efficiency. The problem has finally subsided, but by the end of the year, how will the salaries and bonuses of government agencies and logistics personnel be paid? Is the performance appraisal still in progress? If so, how can it be linked to salary and bonus? What's the point of doing it if it's not linked? May Wen Qiang is in trouble. Performance appraisal should be gradual, and don't fantasize about "crashing" ■ Jiang Xinghua 1. It is necessary to carry out performance appraisal. As we all know, the ever-changing market makes everyone and every enterprise want to be one step ahead. The winner in the future is not to eat small but to eat slowly and quickly. Our partners and competitors are also studying how to improve the performance of their own enterprises more quickly. Performance appraisal should be a win-win tool for enterprises and employees, which helps to achieve organizational goals, improve employees' own performance and quickly surpass competitors. Therefore, before implementation, it is necessary to conduct comprehensive and meticulous training, so that all internal members have a strong sense of enterprise crisis and the concept of performance of large enterprises; Then, on the basis of accepting the performance concept, discuss the specific implementation plan with all the assessed personnel, so that everyone can recognize it in their hearts before implementing it. If most comrades don't approve, there will either be a rebound, or as the case says, "they are all excellent" and perfunctory. Second, the evaluation system needs to be improved. In the whole human resource system of the company, the managers of all departments are actually the first human resource managers. In the evaluation system, the main function of human resource manager is to formulate performance management evaluation system, provide training for evaluators, supervise and evaluate the implementation and operation of various departments, use the results and hold performance evaluation meetings regularly; The main functions of business department managers are to work with subordinates to set performance targets, conduct performance guidance and supervision, fill in scores, and feed back the specific reasons for employees' performance. From the whole case, the evaluation results focus on contract performance, but it is biased for a service department. Later, Mai Wenqiang led the human resources department to conduct a separate questionnaire evaluation and draw a conclusion for each employee. He didn't position the role of his department well and didn't give full play to the enthusiasm of the supervisor, so it will inevitably lead to the opposition of employees in various departments. Personally, I think it is best to use the balanced scorecard to evaluate departments qualitatively and quantitatively from four aspects: evaluation of other departments, main financial objectives, service quality and innovation development. Third, how to link performance appraisal with salary and bonus. Because the department in this case is mainly service-oriented, the long assessment time is not conducive to the improvement of service quality and performance. It is best to conduct quarterly or monthly assessment, and extract a certain percentage from personal salary every month as the assessment floating reward and punishment salary, and at the same time, it is linked to the quarterly or monthly benefit coefficient of the department. Every time the results come out, a performance review meeting should be held, and the heads of all departments should give feedback to their subordinates. In the process of implementing performance appraisal in every enterprise, we will encounter some similar problems. From my personal work experience, first of all, the management should adjust their mentality and not fantasize about immediate results, especially in private enterprises. Then, we should do a good job in various forms of publicity and discussion, and get the support of the heads of various departments; Secondly, fit is the best. The adoption of each scheme must be quoted according to its own actual situation. Don't say which international company is doing well, just copy it all, which may backfire in the end; Finally, it is not terrible to encounter resistance. As long as we persist, constantly find out the essential crux and constantly improve, we will certainly achieve the expected results. The assessment of government personnel should be linked to the assessment of departments and the achievement of company goals. I think the fundamental problem is that Dayun Industry and Trade Company regards unreliable performance appraisal results as the direct basis of salary decision, which leads to greater contradictions and conflicts, so that performance appraisal not only does not promote the realization of organizational goals, but also has a negative impact. Whether and how to use the results of performance evaluation in salary decision-making is a dilemma. If the results of performance appraisal are not linked to the salary decision, employees will not pay special attention to performance appraisal, so some employees will not pay much attention to performance appraisal; Once performance and salary are linked, performance appraisal will become a particularly sensitive issue, and employees will attach great importance to performance appraisal. In this way, if the results of performance appraisal are not reliable enough to cause controversy, the decisions related to salary will inevitably bring greater contradictions and conflicts, just like the performance appraisal storm of organs and logistics personnel of Dayun Industry and Trade Company. So, how did the unreliable evaluation results come from? One is the lack of a reliable performance management system, and the other is that the assessment results are unreliable due to inappropriate assessment contents (indicators and objectives) and assessment methods. Obviously, Dayun Industry and Trade Company lacks a complete performance management system, and its performance management does not form a PDCA cycle, only performance appraisal, and the results of performance appraisal are only used for the distribution of wages and bonuses. If the important purpose of performance appraisal results is to make salary decisions such as salary and bonus distribution, the performance appraisal indicators and appraisal target values of organs and logistics departments (personnel) should comprehensively consider the company-level objectives, departmental responsibilities (post responsibilities) and customer needs and expectations, quantify, refine or streamline as much as possible, follow the SMART principle, and make the appraisal indicators as objective as possible and linked to the company's objectives; It is also necessary to formulate assessment standards and assessment grades in advance and agree on the assessment basis (that is, the source of assessment data). The evaluation basis and evaluation data should preferably come from a third party, so as to avoid the appraisee being both a referee and an athlete. The assessment results of department heads can be directly linked to the performance of the department in charge, or determined by the evaluation of the supervisor, instead of indirectly evaluating themselves by evaluating subordinates as in the case. Of course, the HR department can't do everything. The main body of performance management should be employees and their supervisors, not HR personnel. The author suggests that Mr. Mai should not worry, let alone give up. Performance management is a difficult problem in enterprise management and the core subject of human resource management. We can't avoid it, we can only face it, and we must face it systematically. In the long run, Manager Mai should help the industry and trade company to establish a complete performance management system and gradually establish the concept that performance management is a tool to promote the decomposition and implementation of the company's strategic objectives. The purpose of performance management is to promote everyone to continuously improve their performance, not just for the distribution of wages and bonuses. Of course, this requires a process; Starting from the current situation of Dayun Industry and Trade Company, in order to simply solve the problem of salary and bonus distribution of government logistics personnel, a simple way can start with optimizing the assessment content and calculation rules of assessment results, and link the assessment results of government logistics personnel with the assessment results of their departments and the achievement of the company's goals. The assessment results of departments can be comprehensively evaluated by the front-line departments and their leaders in charge, and the company's goals can focus on the target completion rate of business quantitative indicators. Return to the top to close the window.