HR toolkit Operational efficiency
toolkit...
strategic without getting the basics right
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Electric on why it chose
Inner Mobility solution
digitization at Schneider Electric
opportunities. All employees –
regardless of function or
geography – can be matched
with internal opportunities
for growth based on their
skills, experiences, interests
and aspirations.
The user interface
emphasises simplicity and
ease of use, which ensures a
good user experience.
Who would you
recommend it to?
I’d recommend it to companies
looking to gain full visibility
on their internal talent pools,
identify skills gaps, and
empower employees to reach
their full potential.
What’s been
the result?
After only a few months
the platform had around a
50% adoption rate out of
the total
population to which it
was available.
The data quality and
visibility on our internal
talent has been tremendous.
Schneider Electric successfully
assigned more than 160
employees to new
opportunities, unleashing
17,229 hours in hidden
capacity in just a few months.
Where now?
The InnerMobility platform
has already been rolled out to
multiple functions in various
countries, and in October we
are rolling it out to all of our
US employees (around
20,000). Then in 2020 we will
be focusing on bringing this
initiative to our employees in
France and China.
Back to basics...
Awarding bonuses
Why does it matter?
Money is always an emotive issue, not
least when it comes to bonuses and
how they are awarded. It is imperative
that HR controls the conditions on
which an organisation pays its
bonuses, and the consistency with
which these are applied.
Ensuring there is a clear audit trail
supporting the rationale for why a
bonus is awarded or not, and the basis
for any difference in awards between
employees performing the same role,
is essential.
Deciding whether bonus payments
are contractual or discretionary is
also vital. There is always scope for
discrimination or perverse exercise of
discretion in awarding a bonus. And
HR plays an important role in
mitigating exposure to financial and
reputational risks.
Do...
Ensure contracts and bonus
plans are clearly drafted.
Ambiguous language or
criteria cause problems
if the employee’s
understanding is
not aligned with
the employer’s.
Train line managers in how
to apply the bonus criteria
to an employee’s performance.
Consistency and fairness are key to
avoiding challenges and guarding
against pitfalls.
Remember that a
discretionary bonus does
not mean there are no limits on
the exercise of that discretion – don’t
leave yourself open to allegations
of irrationality.
Challenge and scrutinise
performance awards
with line managers and record
their rationale prior to
communicating bonus decisions. A
paper trail justifying bonus
decisions will be more
credible than personal
recollections in the event
of a subsequent challenge.
Ensure different genders,
minorities, those on
maternity leave and those with
disabilities are not being treated
differently or less favourably in the
way their bonuses are calculated and
awarded. Bonus litigation can be
expensive where discrimination is
a factor.
Don’t…
Pro rate a maternity
leaver’s bonus according
to what they received in the
previous performance year.
The bonus must reflect the
period actually worked prior
to/following return from
maternity leave, as well
as the two weeks’ compulsory
maternity leave period.
Bonuses that are payable by
reference to individual performance
and/or to retrospective work should
still be paid to women who are on
maternity leave.
Use bonuses for reasons
other than those set out in
the award criteria. For example:
an increased bonus for retention
purposes will be out of kilter with
other like performers, which can
lead to equal pay and/or sex
discrimination issues.
Use bonuses as a tool to
mitigate equal pay risks. It
is better to address the underlying pay
parity issues and any flaws in your pay
systems or processes.
Forget to design your bonus
plan so that it does not pay
bonuses where there is misconduct,
poor performance or the employee is
on notice. This would otherwise
undermine the purpose of a bonus.
Withhold bonuses unfairly
where an employee has met the
necessary conditions to warrant
payment. This could result in breach
of the implied term of mutual trust
and confidence. HR
Rachel Reeves is counsel at
Allen & Overy
hrmagazine.co.uk October 2019 HR 45
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