Performance Management Process
Attending the meeting were eight members, three rewards leader guests and participants from the i4cp staff team. Mark Englizian facilitated the call, and introduced the three new member companies: Ford Motor Company (Bernie Swartout); Federal Reserve Bank (Beverley Eskow); and The Gates Foundation (Pam Yanchik).
Each participant was asked to briefly describe a current hot topic for their organization. These items included:
1. How to evolve a compensation environment without ratings
2. Performance management re-alignment
3. Considering a bonus plan for professionals below the director level
4. New CEO transition, who brings new perspectives
5. Solutions for high cost of housing in the Bay Area
6. Uncertain political environment; tight budgets
7. Implementing a new recognition platform
8. Re-design incentive and bonus programs
9. Push/pull between harmonize and localize
10. What to retain as core to the culture, while being market relevant
11. Reviewing bonus and LTI plans; combine? Introduce mandatory deferral?
12. Implementing new technology; new performance management construct
13. Considering incentive targets for lower level employees
Jay Jamrog, co-founder of i4cp, futurist and researcher facilitated a discussion about how organizations are thinking about changes to their existing performance management process, and how this is impacting the distribution of rewards. Discussion included risks of de-coupling pay from performance ratings; the process for instituting continuous feedback; and balancing manager discretion with 360 calibration. The research report on this topic is available on the TRL board member web-page.
Bret Hill from Amazon facilitated a discussion of the tension that is created when market practices tell you one thing and your employer’s strong cultural tenets tell you something else. Global employers such as Amazon, Ford, HSBC and Hertz face these issues. One solution that was discussed: investing a constant % of payroll (as a harmonizing factor) in each country, but allowing market practice differences by each geography that fit within the standard funding.
Mark Englizian introduced optional discussion topics for the October 16 meeting, to be hosted by board member Guy Sasso at HSBC in New York City. Tentatively, the board will work on how to approach the topic of gender pay equity as one of the topics. Members suggested several ideas, which will be considered in session planning. Board members are encouraged to suggest other potential board members that are local to the meeting for possible invitation.
Finally, the Board was reminded of various tools, research reports, articles and other helps that are currently available on the TRL members-only web page.
The next meeting: Monday, October 16 hosted by HSBC in New York City.
Meeting Recording: i4cp Total Rewards Board June 2017
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