MANAGEMENT DE LA PERFORMANCE

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Telecom Business

SOCIAL REPORT

Management Performance

January 2017

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About Telecom business …………………………………………………………

Telecom Business Human Ressources…………………………………………

The study of best practices……………………………………………………….

The USA case ……………………………………………………………………….

Deloitte’s illustration……………………………………………………………….

The Japanese case………………………………………………………………….

The German case……………………………………………………………………

Conclusion……………………………………………………………………………

Telecom’ Business is an American telecommunications company. She counted the end of 2015 almost 50 million customers worldwide, numbers up compared to those posted in 2014. In 2013, the company leader or second operator in 75% of European countries where it operates and in 83% of countries in Africa and the Middle East.

Telecom’ Business was originally a British telecommunications company became, in 1999, the subsidiary of Mannesmann then, in 2000, that of the Allo group, public company. Hello, employed in 2010 some 10 000 people, including 6000 in USA. The former English public monopoly was thus internationalized following the acquisition of Telecom 'Business. The new created group operates mainly in America, Europe and Africa & Caribbean.

In 2015, Telecom 'Business generated revenue of 40.24 billion dollars for all of its activities and had 262.9 million customers worldwide, including 201 million mobile customers and 18.2 million internet customers.

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1. Rappels des différentes formes de rémunération

Essential tool of the Corporate Strategy declination, performance compensation is a guarantee of multiple benefits for all stakeholders of the organization. A study by the Corporate Executive Board in 2015, for the evaluation of 10 000 employees, more than 35 million dollars are spent under the compensation of staff performance including the cost of information systems, for about 200 hours per year per manager.

But to be effective, the compensation system must be fair, consistent to the company strategy, involve employees and especially be known of these in order to avoid situations of frustration and decrease of motivation at work. Let the employee determinate goals is a guarantee of motivation, and deprive him of this initiative is also a reason of disengagement, and demotivation. The cost of the motivation to work was estimated by Hay Group in 2015 to more than 60 billion dollars in France…

In parallel, the companies operate along the explosion of digital, needs change and new working operations emerge. Annual Review, the historical tool for assessing employee performance becomes obsolete. American companies have preferred to stop and develop new ways to assess and recognize employee performance. According to various studies, the annual maintenance would stress generator in 80% of cases, more than 50% of these employees are demotivated after a traditional annual maintenance.

According to the study of the Corporate Executive Board, about 95% of managers are not satisfied with the performance management system which the Human Resources Department implements…

What about Telecom’ Business ?

Since many years, we hear employee complains… The Annual Employee Survey (AES)  indicated that employees are dissatisfied about the performance management system. Their performance isn’t  equitably recognized and only 40% of employees are engaged against our competitor US Telecom which has 80% of their employee who are engaged …  

After all these observations, we decide to organize reviews with employee and manager to understand their needs and to schedule improvement actions…

With the help of our consultant, M. Barnett from Altedia and his trainee, we met 100 managers and 100 employee to find solutions.

As the employee survey indicated, employee are bored about our performance management system… They feel demotivated and stressed about their annual review. They want a system where managers will help them to grow themselves all the year and not a manager who punish them one time a year…

Here some extracts of these interviews :

Do you want to remove the annual review ?

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What would you do instead ?[pic 6]

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Employee and managers want to change our practices 

and this is why I asked you to  worke about a study of best practices to find solutions in others big and succesful companies of other countries…

Débat :

• Right, let’s begin : I sugest we go round the table to hearing each one : Diane, could you start with the first item please ?

• In America, 9 company per 10 delete the annual review : this is why it’s interesting to identify American companies…

• What are your thoughts about this ?

• I totally agree with you…

• This proposal is rejected

• Fine, have you now we have to schedule the next meeting. What are your availabilities?

 To begin, the biggest limit of annual reviews we have observed is this: [pic 8]

• A heavy emphasis on financial rewards and punishments
• their end-of-year structure tend to  hold people accountable for past behavior at the expense of improving current performance and grooming talent for the future, both of which are critical for our organizations’ long-term survival.That why we think we should drop the annual apraisal. We will not be the first, big professional services firm has done it, Kelly Services in 2011; Pwc tried it with a pilot group in 2013 and then discontinued annual reviews for all 200.000 employees. Considering the fact that they are the one who advise others companies, we can give it a try.

From Silicon Valley to New York, more than one-third of U.S. companies are replacing annual reviews with frequent, informal check-ins between managers and employees.

Business researcher Josh Bersin estimates that about 70% of multinational companies are moving toward this model, even if they haven’t arrived quite yet.

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