New ranking system to impact about 53,000 salaried employees
General Motors (GM) is revising its employee performance ranking system that will grant top performers with 150% bonuses, according to reports.
GM's new system expands its previous three-scale rankings to five and ranks employees from "significantly exceeds expectations" to "does not meet expectations," Reuters reported.
Bonuses are linked to these rankings, with top performers rewarded 150% bonuses, while those in the middle category will receive 100% of their target bonuses.
"GM is proud to have a culture where we foster and reward high performance, which will help us attract and retain top talent in a competitive industry environment," a GM spokesperson told Reuters.
"That includes everything from ensuring employees know what is expected of them, providing feedback so they can develop, and rewarding them for their performance."
The new ranking system will likely impact about 53,000 salaried employees in the United States.
According to the report, GM expects 70% to be in the middle category, while an estimated five per cent will be ranked "does not meet expectations."
For staff at the bottom of the rankings, GM said appropriate actions will be taken, including "being exited from the company."
"To ensure GM has the talent needed to achieve our ambitious goals, a more intentional process is required that sets clear expectations for performance and holds people accountable," read the memo as reported by Reuters.
GM joins fellow automaker Ford in introducing a revised performance evaluated system.
"We've learned that the right talent is not sufficient. Over the last two years, it's been imperative that we go to a right performance management system. It's a fundamental change in the way we're running the company," said Ford CEO Jim Farley as quoted by Reuters.
