Week 8

3 HR Practices


Performance Management

Performance Management includes the annual appraisal of employee job performance, as well as the procedures used to communicate job expectations and provide feedback on performance throughout the year and at the year-end performance rating. The performance rating is used for compensation, promotion, and other employment decisions.

Program Design: The Company has developed a single performance management system for all Singapore-based employees in order to ensure a fair, documented performance evaluation based on specific, job-related measurements. The process also provides for improved internal oversight of the performance management system by Human Resources staff. As designed, each employee meets with his or her manager at the beginning of the review cycle to define specific measurable performance objectives for the year, and to identify a series of competencies that will be required to execute those performance objectives. This mutually agreed-upon performance plan forms the basis for ongoing performance feedback throughout the course of the year, as well as for year-end annual performance ratings. At the end of the review cycle, employees provide self-assessment information to their managers, and managers evaluate and rate employee performance. The employee receives a copy of the performance appraisal form, which includes an opportunity for employee comment and signature.

Consistent with best practice, the performance management system includes a midyear review; mandatory two-day training of both managers and employees in how the system works; active employee involvement in planning, tracking and reviewing their own performance; second level review; rater calibration, and an appeals process. In addition, the Company emphasizes the linkage between performance objectives and business unit goals, and requires rating calibration meetings.

Implementation: Consistent with best practice, a one-day training for both managers and employees in how the system works, “Maximizing Performance”, is mandatory. Virtually the entire work force is receiving training. Training in coaching and feedback is also mandatory for managers. In addition, managers receive training in how to rate employees accurately (i.e., Rater Accuracy training), followed by separate "rater calibration" sessions at the end of each review cycle to ensure consistent use of the rating scales.


Staffing

Staffing involves the identification of both internal and external candidates for employment positions (through job posting and recruitment, respectively). The assessment of their qualifications, primarily through structured interviews, and the process for making a selection decision among candidates. The Company has implemented a new job posting process, expanded its diversity recruitment efforts, implemented a new applicant tracking system and increased monitoring on all phases of the staffing process.

Program Design: The Company chose to design and implement new staffing processes for both internal and external candidates. The principal selection device used is a structured interview. The Company utilizes an automated, job posting process. All vacant positions at salary grade 'executive' and below must be posted on the system for a minimum of 30 calendar days prior to an offer being made. The job posting process specifies that a candidate pool must consist of three or more candidates, at least one of whom must be a woman or a minority. Employees may nominate themselves for posted positions and may appeal any decision not to refer them to a candidate slate.

The Company’s leadership has made a significant commitment of time and resources to increase diversity in 'senior and matured' hires; to build a pipeline of diverse talent; to implement a program of executive mentors; to require senior leaders to identify high potential diverse talent to be developed through focused development plans.


Compensation

"For the same job-scope and responsibilities, we pay salaries above the Singapore-Government's Public and Private sectors"

Compensation includes the process for classifying jobs into pay grades; making base pay, bonus and stock option decisions; and evaluating the fairness of resulting compensation decisions.

System Design: The Company's compensation system references the Singapore Government's Annual Wages Survey in the Computer, Electronics, and Chemical manufacturing industry. It is the actual practicing market-based salary structure with actual data from the Singapore Government's Central-Provident-Fund Board. All business-units have a common review date for merit increases, providing additional training and resources for managers to make appropriate compensation decisions and instituting regular pay equity and adverse impact analyzes of compensation decisions. Additional tools and resources have been provided to managers to assist them in making salary administration decisions. The Company provided a comprehensive "Singapore Ministry of Manpower Survey of Wages" training program for all human resource professionals, managers, and employees.

Implementation: The Company conducts pay equity analyzes prior to awarding annual merit increases. In addition to examining equity in total salary, the Company annually conducts adverse impact analyzes on the annual merit increases. As it had in previous years, the Company also conducts adverse impact analyzes on bonus decisions.