More pressure due to new evaluation?
SAP wants to divide its workforce into “bringers” and “non-bringers”.
December 7, 2023, 1:53 p.m
The management of the DAX group SAP wants to realign its personnel policy. Supposedly, employees should be classified as “performers,” “achievers,” or “improvers.” Some receive bonuses, others receive mandatory coaching. The workforce reacts angrily.
The software manufacturer SAP is striving for a rigorous realignment of its human resources policy. As the “Handelsblatt” writes, the management around board spokesman Christian Klein not only wants to give employees grades in the future, but also classify them into three categories – those who end up at the lower end of the scale are likely to come under pressure. According to the report, there are also concrete considerations to require employees to be in the office three days a week in the future.
The classification of personnel is based on the so-called winning culture system. The workforce is divided into three groups: top performers or “performers” who are given special consideration when it comes to bonus payments. Secondly, the “achievers” who meet the employer’s expectations 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” gives detailed instructions on what you have to do.
If management has its way, the paper writes, the new performance-based system will soon replace the current one. The current rating system has been used since 2017. It is based on a continuous dialogue for personal development between superiors and employees, which is why it is also called “SAP Talk”. Employees reacted angrily to the plans, it is said, citing informed circles. The criticism: The goal of the new system could, among other things, be to reduce staff.
Method from the 80s for staff reduction?
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 that was made famous in the USA in the 1980s by General Electric boss Jack Welch. This method is based on the assumption that a company improves its workforce by getting rid of the supposedly worst employees every year. According to the report, SAP estimates the proportion of employees who belong to the lower category at three to five percent of the workforce.
According to the paper, the SAP boss’s suggestion to make attendance in the office mandatory three days a week is also causing dissatisfaction. Previously, individual agreements with superiors applied. Union representatives criticized that the planned measures increased work pressure and could have a negative impact on the working environment. Even non-union members of the SAP works council consider the introduction of such a classic performance evaluation system to be problematic. The plans contradict the previous development-driven 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 rating system will actually take hold. The introduction of a new personnel evaluation system is subject to co-determination. When asked by ntv.de, it was said that these were ongoing negotiations with an open outcome. “In our dynamic industry, it is crucial to continually expand employees’ skills, use feedback constructively and learn continuously,” says SAP spokesman Björn Emde. “We are convinced that our employees want to perform well in their jobs. … “To do this, we rely on regular feedback and clear targets. And support if difficulties arise.” SAP has always been considered one of the most attractive employers in Germany: the software manufacturer regularly ranks high in rankings.