Through years of continuous practice of various performance management methods, Ping An found that "horizontal ranking, proportional distribution and incentive elimination" is the most concise and effective performance appraisal method, and it is also the most easily understood by employees. In peacetime, this is vividly called "racial system".
Horizontal ranking
(1) The company adopts the horizontal ranking system, ranking the performance appraisal results of employees twice a year. Every employee is ranked after each performance appraisal, and the team is always in a highly competitive state, which effectively drives all employees to keep forging ahead, thus promoting the improvement of the company's overall performance ability.
(2) Forced proportional distribution
After the performance appraisal, the company will rank the employees 7: 2: 1 according to the appraisal results.
(3) Incentive and elimination
According to the ranking and proportion distribution, the company has different incentives and elimination measures for employees with different performance.
The top 70% of employees have a salary increase, and people in different rankings have different salary increases. At the same time, the company will also refer to changes in the price level and industry level; Ranked in the top 40% for two consecutive years is the first condition for employees to get promotion opportunities. Of course, job vacancies and qualifications are also taken into account.
70-90% of employees will have no change in salary and position, usually lacking in ability, so the company will give training according to their weaknesses to improve their performance, or adjust their positions to make them serve positions that are more suitable for them.
The difference is that Ping An has a fixed elimination ratio. Eliminate 3%-5% every year. Employees at the bottom 10% or 5% will be demoted, paid less, transferred or even eliminated. Employees whose salaries have been reduced for two consecutive years must be demoted. After investigation, the HR of the subsidiary will make a decision of salary reduction, transfer or even dismissal. Ping An believes that this is the protection for other 95% employees who work well, and it also avoids the aging phenomenon that may occur during the company's growth. Ping An believes that the ultimate goal of good performance management is the promotion of employees. Even if the process is cruel and difficult, employees will ultimately benefit from the improvement of their own market value. Evaluation index of soft and hard combination
Ping An has a clear and accurate description of its vision. On this basis, the company has carried out continuous refining and deduction, and formed long-term (5- 10 years), medium-term (3-5 years) and short-term goals (1-3 years) respectively. With the shortening of the target period, the overall strategic planning of the group tends to be concrete, and eventually the annual business objectives, key action plans and detailed action plans of each business line are formed. Among them, the short-term goals need to be re-formulated and reviewed every year, and through communication with the supervisor, we can ensure that our goals are consistent with the company's strategy.
The specific indicators of different subsidiaries are different, but the overall characteristics are relatively consistent: they are highly matched with their business/financial budgets;
Emphasize the substantial growth of multiple comparison dimensions, including comparison with the market, comparison with the plan and comparison with oneself.
Enterprise performance management indicators are highly consistent with the CEO accountability objectives of each subsidiary, emphasizing results-oriented and taking full responsibility for success or failure.
According to the organizational structure, it is effectively decomposed and implemented at different levels.
These goals will systematically follow up the progress of employees every month, and the supervisor will evaluate, update and encourage employees in time. Ping An established a talent quality model within the company to help employees establish their own performance goals.
The assessment of some backstage positions is subjective, and the assessment index depends on the current development and demand of the company. The assessment results will be combined with the flexibility evaluation of the supervisor and compared with the employees of other back-office modules. For example, the primary task of HR in the last two years is to build a complete performance management platform and system and implement everyone's performance management (only 50% of employees now enter this performance management system), so there will be relevant indicators in its assessment system; In the whole HR module, performance managers and compensation managers will be compared first, and then managers of HR module and financial module will be compared. Of course, there are also hard indicators, such as whether the tasks of HR are completed or not, and whether the target of human resource cost control is achieved. If the cost exceeds 20%, it will be unqualified.
Front-line positions, such as sales, take turnover as the main assessment target. For example, the assessment indicators of branch managers are almost all related to performance, both profit and turnover-no company aims at no profit growth or no profit growth, and managers should achieve high growth under high profit and high profit under high growth, and the two must be balanced and maintain stable development. The assessment indicators of different subsidiaries at different stages of development will be focused, but this must be based on profitability. The assessment of each business department can be adjusted according to the actual situation, but it must conform to the three major assessment methods.
Ping An is result-oriented, and the performance results are linked to the direct and indirect interests of employees. According to the problems reflected in the performance results, employees are trained to help them better enter the role. All performance management will enter the performance file, which will become the first reference standard in mobilizing and selecting managers. Therefore, performance appraisal has been highly valued by employees in Ping An.
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