SAP wants to divide the workforce into "contributors" and "non-contributors"
The management of DAX-listed company SAP wants to realign its personnel policy. Apparently, employees are to be classified as "performers", "achievers" or "improvers". Some will receive bonuses, others mandatory coaching. The workforce reacts angrily.
The software manufacturer SAP is aiming for a rigorous realignment of its personnel policy. As the "Handelsblatt" newspaper writes, the management around CEO Christian Klein not only wants to give employees grades in future, but also classify them in three categories - those at the lower end of the scale are likely to come under pressure. According to the report, there are also concrete plans to require employees to be in the office three days a week in future.
The classification of staff is based on the so-called Winning Culture System. The workforce is divided into three groups: High achievers or "performers", who are given special consideration for bonus payments. Secondly, the "achievers", who meet the employer's expectations and are likely to make up the majority. And finally, so-called "improvers" who need to improve. Employees who find themselves at the lower end of the scale should receive mandatory coaching. A "Performance Improvement Plan" provides detailed guidelines on what they have to do.
If management has its way, the newspaper writes, the new performance-based system will soon replace the current one. The current evaluation system has been in place since 2017. It is based on an ongoing personal development dialog between line managers and employees and is also known as "SAP Talk". Employees have reacted angrily to the plans, according to sources close to the matter. The criticism: one of the aims of the new system could be to reduce staff numbers.
Method from the 80s to reduce staff?
According to Handelsblatt, Klein is aiming for greater staff rotation within Germany. The new evaluation system should also contribute to this. In employee circles, the new method is seen as a variant of the controversial "stack ranking", a management method made famous in the 1980s in the USA by General Electric boss Jack Welch. This method is based on the assumption that a company improves its staff by getting rid of the supposedly worst employees every year. According to the report, SAP estimates the proportion of employees in the lower category to be between three and five percent of the workforce.
According to the newspaper, the SAP boss's proposal to make office attendance mandatory three days a week is also causing displeasure. Until now, individual agreements with superiors have applied. Union representatives criticized that the planned measures would increase work pressure and could have a negative impact on the working environment. Non-unionized members of the SAP works council also consider the introduction of such a traditional performance evaluation system to be problematic. The plans contradict the previous development-oriented evaluation culture at SAP and put the relationship of trust between management and employees to the test.
It remains to be seen whether the new evaluation system will actually be introduced. The introduction of a new personnel evaluation system is subject to co-determination. When asked by ntv.de, the company said that negotiations are ongoing and the outcome is still open. "In our dynamic industry, it is crucial to continuously expand employees' skills, use feedback constructively and learn on a permanent basis," said SAP spokesperson Björn Emde. "We are convinced that our employees want to perform on the job. ... To this end, we rely on regular feedback and clear targets. And support in the event of difficulties." SAP has always been considered one of the most attractive employers in Germany: the software manufacturer has regularly come out on top in rankings.
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During themanagement's reevaluation of SAP's personnel policy, employees may find themselves classified as "performers", "achievers", or "improvers". This categorization is crucial as it determines eligibility for bonuses or mandatory coaching sessions.
SAP's proposed classification system aligns with the "Winning Culture System", segregating employees into high achievers, meeting expectations employees, and those requiring improvement. This method aims to streamline the workforce and may inadvertently influence staff reductions.
Source: www.ntv.de
