Snapdeal replaces annual performance appraisals with trimester reviews to keep up pace in an industry that is rapidly changing to the needs and priorities to retain talent.
As a part of this performance evaluation system, the 5,000 odd-employees at the Delhi based Ecommerce Company will conduct performance appraisals and goal setting every four months to realign business objectives and setting new benchmark targets.
The performance assessment for the first trimester which is April-July will be conducted by mid-August. This new system is also based on employee feedback, aimed at frequent engagement with the staffers and to retain high-potential employees within the organisation. This move aims to keep attrition under check by managing expectations of the young staffers.
At Snapdeal, the average age of employee is 26. Founders Kunal Bahl and Rohit Bansal, along with the top management team at Snapdeal, have been the architects and sponsors of the new more fluid and frequent performance mapping and rating.
“The pace at which the ecommerce industry is growing, a year is too long a time-frame to review performance and set goals,” said D Rajiv Krishnan, partner, advisory services and leader, people and organisation, at consultancy firm EY. “They have to do it rapidly, accurately and frequently.”
See: Enhance Performance Reviews with HR Technology
Based on assessment, employees will be rewarded both monetarily and non-monetarily. However salary hikes will continue to be at the end of every fiscal year. The company follows an April-March financial year much like Amazon, however rivals such as Flipkart and Jabong follow a bi-annual appraisal format.
As per the new system, Snapdeal will set organisational goals at the beginning of the trimester, and every functional head would be required to determine their pre-set targets and link them to the company’s vision and long-term organisational goals. A similar method will be used to cascade functional goals to team functions and performance to bring in sync with business and individual goals. Every employee can have maximum five goals.
The company has also articulated new performance metrics to include innovation, agility, transparency, regular feedback and review, employee development, critical feedback and upskilling. The over-arching aim here is to drive meritocracy. Saurabh Nigam, vice president, human resources at Snapdeal said, “If you do well, monetary and non-monetary rewards follow every trimester.”
According to a recent survey by Great Places to Work, it emphasised on the need to come up with a robust and more engaging assessment system. Carefully analysing the best practices followed by companies across the globe and having incorporated them into the revised system, EY’s Krishnan adds: “The ecommerce industry has a very dynamic environment … they have hired a lot of people from different industries with high salary package. The stakes for success there is also very high. As a result if they have to succeed, they have to do things quickly and dramatically.”
Source: EconomicTimes.com
Also read: 6 Keys to Improve Performance Reviews
Image credits: twitter.com
