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    Presentation - Performance Management System Ihcl

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    Arijit Das
    The human resources document summarizes the performance management system changes made at IHCL from an individual-based system to a team-based system in 2015. The key points are: 1) Before 2015, employee performance ratings were high despite missed financial targets, with compensation below market levels. 2) In 2015, IHCL introduced a new team-based performance system to better align employee and business performance. It merged variable pay into fixed compensation and rewarded team performance. 3) The new system focuses evaluations on financials, processes, and leadership behavior at the team level. It has led to improved business results including profits, guest satisfaction, and employee retention since 2015.

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    Presentation - Performance Management System Ihcl

    Uploaded by

    Arijit Das
    12 views7 pages
    The human resources document summarizes the performance management system changes made at IHCL from an individual-based system to a team-based system in 2015. The key points are: 1) Before 2015, employee performance ratings were high despite missed financial targets, with compensation below market levels. 2) In 2015, IHCL introduced a new team-based performance system to better align employee and business performance. It merged variable pay into fixed compensation and rewarded team performance. 3) The new system focuses evaluations on financials, processes, and leadership behavior at the team level. It has led to improved business results including profits, guest satisfaction, and employee retention since 2015.

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    The human resources document summarizes the performance management system changes made at IHCL from an individual-based system to a team-based system in 2015. The key points are: 1) Before 2015, employee performance ratings were high despite missed financial targets, with compensation below market levels. 2) In 2015, IHCL introduced a new team-based performance system to better align employee and business performance. It merged variable pay into fixed compensation and rewarded team performance. 3) The new system focuses evaluations on financials, processes, and leadership behavior at the team level. It has led to improved business results including profits, guest satisfaction, and employee retention since 2015.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    12 views7 pages

    Presentation - Performance Management System Ihcl

    Uploaded by

    Arijit Das
    The human resources document summarizes the performance management system changes made at IHCL from an individual-based system to a team-based system in 2015. The key points are: 1) Before 2015, employee performance ratings were high despite missed financial targets, with compensation below market levels. 2) In 2015, IHCL introduced a new team-based performance system to better align employee and business performance. It merged variable pay into fixed compensation and rewarded team performance. 3) The new system focuses evaluations on financials, processes, and leadership behavior at the team level. It has led to improved business results including profits, guest satisfaction, and employee retention since 2015.

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    Human Resources

    WHA Award Submission


    Performance Management System @ IHCL
    Scenario before 2015: Near-excellent performance ratings, despite missed financial targets

    BUSINESS PERFORMANCE EMPLOYEE PERFORMANCE

    Profit (Loss) After Tax (2013-14): Average individual performance rating

    (554) Crores INR 4/5


    (80) Million USD

    SYMPATHY PAY
    - Compensation at 32nd percentile of market

    - Variable pay provided only on achieving 4 rating

    - No recognition of outstanding performance


    A Need to re-align the focus: Shift from individual-based PMS to team-based PMS

    INDIVIDUAL BASED PMS TEAM BASED PMS

    INTRODUCTION OF NEW PAY FOR PERFORMANCE SYSTEM

    MATCH MARKET COMPENSATION - Merge variable component into fixed pay

    COLLABORATIVE APPROACH - Reward team performance

    LINK VARIABLE PAY TO TEAM - Promote over-achievement of targets


    PERFORMANCE

    MANAGE CHANGE WELL - Effective communication of new system


    The team-based PMS focused on performance on key business parameters
    PERFORMANCE MANAGEMENT SYSTEM
    LEADERSHIP
    FINANCIALS 60% PROCESSES 30% 10%
    BEHAVIOUR

     Net Promoter Score


     EBITDA
     Total Revenue  Frontline Retention Individual Leadership Behaviour
     RevPar Premium
     Audits & compliances
     Accounts

    POTENTIAL ASSESSMENT- Individual ratings on the potential to grow are used to help employees identify their development needs and develop themselves

    HIGH POTENTIAL
    Needs fast track development
    ABILITY

    WELL PLACED RATINGS REVIEWED AT


    Needs focused development TALENT COUNCILS

    ASPIRATION LEADERSHIP
    NEEDS DEVELOPMENT
    Needs development in current role
    Quarterly Performance Chats help employees stay on track in their individual performance
    The impact of the transformed PMS continues to show through our improved
    performance on key business parameters
    TEAM BASED PERFORMANCE EMPLOYEE ENGAGEMENT

    More hotels are performing better on team based goals Gallup Grand Mean
    70
    2015/16
    56 2018/19

    2015-16 2017-18
    4.36 4.42
    22
    13
    10
    4

    0 0.5 1 1.5 2 2.5 3 3.5

    FRONTLINE RETENTION GUEST SATISFACTION BUSINESS PERFORMANCE

    Frontline Voluntary Retention (%) Net Promotor Score Profit (Loss) After Tax:

    2013-14
    (554) Crores 2018-19
    2015-16 2018-19 2015-16 2018-19 INR 287 Crores (INR)
    75% 83.8% 59.9% 63% (80) Million 41.6 Million (USD)
    USD
    Our team based PMS is also a Deloitte Case Study (published in 2018)

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