Sterlite’s solution was a bold three-pronged attack, shattering the mould of traditional appraisals. Transparency, fairness, and individual growth became the cornerstones of their new system. One of the first things to go was the dreaded bell curve. No more categorising employees against each other in a fight for limited rewards. Instead, Sterlite focused on rewarding absolute performance. “Someone exceeding their goals by 115 per cent gets acknowledged for that achievement, not compared to someone else,” explained Pande. This eliminated the time-consuming debates about rankings and ensured everyone who met or exceeded expectations got rewarded.

But fairness wasn’t just about the present. Sterlite understood the importance of investing in the future. Their ‘Job Worth Model’ meticulously evaluated the market value of each role, ensuring salaries reflected not just current worth but also anticipated future demands. This helped mitigate the risk of losing talent to competitors offering better compensation. It was a future-proof strategy that recognised that a satisfied and valued workforce was the backbone of any successful organisation.

“The potential for higher increments based on increased proficiency fuelled a growth mindset within the organisation. Employees were no longer cogs in a machine; they were valued partners whose development was seen as an investment in the company’s future.”

Ruhie Pande,  group CHRO, Sterlite Power

Next came the expertise factor. Sterlite recognised that continuous learning and development were crucial not only for individual growth but also for the company’s continued innovation. Employees were assessed based on their current skill level, from beginner to expert. This not only recognised their contributions but also incentivised them to keep learning. The potential for higher increments based on increased proficiency fuelled a growth mindset within the organisation. Employees were no longer cogs in a machine; they were valued partners whose development was seen as an investment in the company’s future.

But potential wasn’t ignored either. Sterlite used a robust ‘talent-assessment process’ to evaluate an employee’s potential, ability, and overall fit. This multi-layered approach ensured consistency and fairness in assessing potential across the organisation. Variable pay, with the possibility of earning up to 150 per cent, was directly tied to this assessment. Here, Sterlite was acknowledging that some individuals possessed the drive and talent to excel beyond their current roles. By identifying these high potentials and rewarding their potential, Sterlite was investing in future leaders who would drive the company forward.

The linchpin of this system was the OKR (objectives and key results ) methodology. OKR ensured everyone, from top to bottom, understood how their individual goals contributed to the company’s overall objectives. There was no cap on variable pay, further motivating employees to strive for excellence. Production goals cascaded down from top-level profitability objectives, ensuring everyone was aligned towards a common purpose. Imagine a well-oiled machine where every part functioned seamlessly to achieve a greater goal. That’s what Sterlite was striving for – a company where individual ambition and purpose were harnessed to drive organisational success.

This new system wasn’t without its challenges. Rewarding potential was a leap of faith, and ensuring accurate talent assessment was crucial. Budgeting also required adjustments, as there was no longer a system of ranking and elimination. Open communication with employees was paramount to ensure a smooth transition. However, Sterlite successfully navigated these hurdles, and the feedback from employees was overwhelmingly positive. They felt valued, heard, and invested in, a stark contrast to the often-negative sentiment associated with traditional performance reviews.

The company’s commitment to continuous improvement didn’t stop there. Regular benchmarking ensured they stayed ahead of market trends in compensation and performance management practices. Variable pay was awarded twice a year to reflect market fluctuations, keeping employees engaged and focused on delivering results throughout the year. Looking ahead, Sterlite planned to digitise the entire appraisal process, catering to the mobile-first preferences of the younger generation. The goal? To streamline discussions and focus on providing valuable developmental feedback, not just debating performance metrics. Performance reviews, once a dreaded formality, were being transformed into meaningful conversations about growth and development.

Sterlite Power’s innovative approach to appraisals proved that performance reviews could be a tool for growth, not just a box-ticking exercise. By focusing on transparency, fairness, and individual development, they created a system that benefited both the company and its employees, ensuring they remained a leader in the ever-evolving energy sector. In a world where the only constant is change, Sterlite had embraced a performance management system that was flexible, adaptable, and future-oriented, positioning them for success in the years to come.

The post What’s in Sterlite’s three-pronged approach to appraisals? appeared first on HR Katha.

This decision comes amidst heightened scrutiny from the Reserve Bank of India (RBI) regarding compliance issues with Paytm’s payment banks, as detailed in a recent report by MoneyControl.

However, in a recent update, Paytm has refuted claims of impending layoffs, asserting that it is not planning any such reductions in its workforce. Instead, the company has clarified that any changes in roles are solely based on performance evaluations rather than layoffs. Nevertheless, it acknowledges that layoffs are occurring within Paytm Payments Bank, citing the ongoing annual appraisal cycle as the reason for performance-based adjustments.

Although the exact number of employees facing termination remains uncertain, the reports suggests that this restructuring process commenced around two weeks ago, leaving many employees feeling uncertain about the security of their jobs. Responding to inquiries, a Paytm spokesperson downplayed the reports, attributing them to routine performance reviews that may result in job-role adjustments based on performance metrics.

According to sources, the manner in which the company is handling these potential layoffs has raised concerns. It is reported that HR personnel are informing individuals individually without any mention of severance packages. Instead, employees are being placed on a one-month performance improvement plan (PIP), which could ultimately lead to termination, followed by a 30-day notice period.

As Paytm continues to navigate through regulatory challenges, employees are eagerly seeking clarity and support during this turbulent period.

The post Employees on edge as layoff rumours spread at Paytm appeared first on HR Katha.

More than 65 per cent of ZS’ 8,000-strong global workforce comprises quality talent from campuses and organisations in India. The Company will mainly hire from campuses in Delhi, Pune and Bangalore.

In 2020, amidst the pandemic, the Company managed to hire and onboard about 2,000 people. In addition it also announced promotions and successfully completed its two rounds of appraisals. The year-end appraisal resulted in a record number of promotions in one cycle.

The Company offered all its employees bonuses in addition to the yearly performance bonus. It also rolled out new employee-friendly policies. It offered its staff a one-time work-from-home allowance to help them set up a comfortable workstation at home. It did not forget to shares its success with its staff and gave them success bonuses too.

The Company helps pharmaceutical and biotech firms to solve complex challenges across the research, discovery and commercialisation life cycle. It helps medical technology firms improve their commercial effectiveness and accelerate their revenue growth. It works with high-tech and telecommunications firms to identify, develop and deliver innovative sales and marketing solutions to drive competitive advantage.

From portfolio management and growth strategy to customer experience and digital transformation, ZS helps its customers enhance performance and deliver lasting value.

The post ZS to expand India team by 3,000 appeared first on HR Katha.

In sectors where businesses have been seriously hit, the major challenge is to avoid losing one’s job. However, there are sectors where business is continuing as usual, yet many of the companies from these sectors are playing it safe.

The Big 4 – PwC India, Deloitte India, EY (Ernst and Young) India and KPMG have all decided to defer their employee appraisal cycles, which include promotions and bonuses, because of the virus outbreak.

Not just the private companies, even several government organisations have declared salary cuts. In view of the economic impact of the coronavirus lockdown, Maharashtra’s

we have managed to ensure continuity of the performance appraisal process through meaningful performance & developmental conversations between the managers & the appraises through virtual interactions & meaningful conversations supported by the right technology.

Deputy Chief Minister and Finance Minister Ajit Pawar announced on March 31, that salaries of ministers, the chief minister and other elected representatives, along with all government officials in the State will be slashed by up to 60 per cent in March, and the balance will be paid later when the situation improves.

Central government too has extended the dates for initiation and completion of its employees’ annual performance appraisal reports (APARs) due to the coronavirus pandemic.

There is optimism yet, as companies are postponing the appraisal process, but not completely calling it off.

Suresh Kumar, president-HR, Polycab India, who represents an electrical solutions company, says, “Business from all verticals has been heavily impacted. Hence, we will delay the increment process but will definitely pay our employees their due amounts along with the arrears at a later stage.”

The only small change we will introduce now will be a variation in fixed salaries, which too will be performance based

“In our organisation, the salary consists of fixed and variables in the ratio of 75:25, and increments range from 5-12 per cent and that is dependent upon the employee’s annual performance. The only small change we will introduce now will be a variation in fixed salaries, which too will be performance based.”

According to a media space professional, Amit Das, director -HR and CHRO, BCCL (Times Group), “the continuity of the performance appraisal process will happen through meaningful performance & developmental conversations between the managers & the appraises through virtual interactions & meaningful conversations supported by the right technology. However, the increment & rewards outcome need to be evaluated & decided through a pragmatic & balanced approach based on the short term & long term impact of the current phase of business disruptions.”

In the quick service restaurant (QSR) space, the picture is brighter. Talking about the appraisal process, Balachandar N, group director, HR, Coffee Day Group, says, “Nothing will change or be shifted even by an ounce from where it was. We are still devising ways to live up to our commitments to our employees, but amidst this havoc, the process will be a bit prolonged.”

However, he adds, “As all must be aware, we lost our MD (VG Siddhartha) last year, and hence, many discussions are still going on in order to keep the business running as usual. Though we had to shut down few of our outlets, decisions about when to give increments and how much are yet to be taken.”

Nothing will change or be shifted even by an ounce from where it was

Industry observers say that sectors, such as pharmaceuticals and professional services are expected to remain unaffected by the Covid-19 outbreak and appraisals in these sectors will be done as usual.

Another sector, where increments have already been announced is the legal consultancy space.  All top law firms, including Cyril Amarchand Mangaldas (CAM), Shardul Amarchand Mangaldas (SAM), Khaitan and Co., Luthra and Luthra Partners, and Juris Corp are proactively giving out bonuses to their associates and partners.

Amidst such challenges, the employers too expect some understanding, the same way in which employees expect empathy from their employers. This is a phase where the companies will get to know who will stand by them through thick and thin!

The post Appraisals: Will the status quo continue? appeared first on HR Katha.

On March 30, the Personnel Ministry, issued an order stating the revised target date for completion of APARs for Group A, B and C officers of the central civil services.

As per the order, blank APAR forms should be distributed by May 30, 2020 and employees should submit the appraisal forms to their reporting managers, latest by June 30, 2020.

As per the Ministry’s order, this measure is a one-time relaxation only.

The Ministry further stated that the disclosure of the APAR of the officer reported upon should be done by September 10 (in cases where there is no accepting authority) and by October 10 (in cases where there is an accepting authority).

The post Employees can submit appraisal forms till June 30, centre extends date appeared first on HR Katha.

French information-technology company, Capgemini, handed out increments of 0-4 per cent to its employees. This is despite the fact that it has reported 3,153 million euros of revenues for the first quarter of 2018, up 7.2 per cent at constant exchange rates, and has maintained its forecast for the next year.

The Company also said in an official release that it expects to “accelerate its growth with revenue progression of six per cent to seven per cent at constant exchange rates, to increase profitability with an operating margin of 12.0 per cent to 12.2 per cent, and to generate an organic free cash flow in excess of one billion euros.”

As per media reports, several of its employees took to social media to express their dissatisfaction.

The Company has also announced a cut of up to 20 per cent in variable pay for the year.

In an e-mail response to Moneycontrol, a Capgemini spokesperson said, “Our employee remuneration is defined in an objective process, consistent with industry norms, to ensure we are aligned with our customer needs, business priorities, and the overall industry evolution. Annual increments are determined by individual performance and potential, and the strategic business goals of the company.”

On March 31, Capgemini Group’s total headcount was 2,03,400, up 3.9 per cent from last year, with an increase in employees in offshore centres to 1,15,900, which is 57 per cent of the total headcount.
Paul Hermelin, CEO, Capgemini Group said in a statement, “Capgemini starts the year with an excellent growth momentum. The Group continues to win market share, reflecting the alignment of its service portfolio with customer demand for both innovation and competitiveness. Demand is particularly strong in Europe and North America, driven notably by the financial services, consumer goods and manufacturing sectors.”

Digital and cloud revenues grew 20 per cent at constant exchange rates and accounted for over 40 per cent of group revenues.

Employees who took to Twitter also questioned why they were not being adequately compensated if the Group was performing well.

In its response to queries from Moneycontrol, the Capgemini spokesperson further said, “We are committed to rewarding top performers and offering them a strong career path, and have successfully completed promotions for 2018. We are also investing heavily in re-skilling our workforce. In 2017, over 60,000 employees in India underwent training. This year, we aim to provide every employee the opportunity to participate in one or more training programmes in emerging digital skills.”

The post Capgemini employees unhappy over appraisals appeared first on HR Katha.