Performance Management approach

„ Performance is the overall display of what and how a person performed and achieved against set
objectives and expressed expectations, according to his or her role.”

Performance objectives –
Values Excellent
KPIs
(HOW)
(WHAT) Above expectations
• Care
Measurable objectives - • Problem-solving
individual objectives reflecting • Teamwork Meets expectations
specific role related priorities. • Mind wide-open
• Integrity & transparency
Strategic Priorities - key • Innovation Partially meets expectations
projects / key initiatives
relevant during current year
Unsatisfactory

1
 Performance ratings

This person acts as a role – model, consistently over-achieves objectives and demonstrates the values and
Excellent assessed behaviors. Consistently goes beyond the job responsibilities and is clearly differentiating amongst
his/her peers in attitude, performance and results.

This person acts as a strong performer, fully achieves and even exceeds objectives, demonstrates the values
Above expectations and assessed behaviors. Goes beyond job responsibilities in specific circumstances and is considered amongst
the best performers in his/her peer group.

Fully meets This person is a solid performer, meets all or most objectives and demonstrates the values and assessed
expectations behaviors in all or most circumstances.

Partially meets This person is an inconsistent performer, meets partially objectives and demonstrates to some extent the
expectations values and the assessed behaviors. The manager assesses that there is room and potential for improvement.

This person is a low performer, does not meet majority of objectives and rarely or never demonstrates the
Unsatisfactory values and the assessed behaviors. The manager assesses there is little to no potential to improve.

2
 Performance impact on Reward

Performance Reward

Bonus
Performance rating  Company financial results
 Individual contributors results Career
5 - Excellent (KPI’s + special projects) opportunities

Non - financial
4 - Above expectations  Evaluated behaviors based on
company values

Financial
3 - Fully meets expectations  Cash
2 - Partially meets expectations
Special projects
1 - Unsatisfactory
Annual salary increase
 Change in role (promo, lateral)
 Internal equity
 External market Trainings
Job / Role

3
 Performance Management Cycle

Objective setting (using as a tool Charisma – performance module)

Prerequisite: company budget completion
Jan - Mar  Team & individual KPIs
 Strategic priorities
 Areas for improvement/individual development plans

Ongoing conversations on performance

 Monthly check-ins

Mid-year review
Jan – Dec  Managing and support employees in delivering against their objectives
 Adjusting KPIs or bahavioral aspects
June  Adjusting individual development plans

End Year Review + Calibration meetings

 Review KPIs / achievements / any feedback available
 Complete 360 forms where applicable (a pilot is recommended at the begining)
Dec - Febr  Complete annual performance review form
 Discussion between employee and manager
 Identify areas of improvement and opportunities for professional growth
 Outcome - performance rating 1 to 5 / review of role (no change / promotion / lateral
move)

Final performance rating communication and reward payment

March-April  Reward = Calculate the annual bonus and wage growth and payment
 Communicate final performance rating using reward letter and bonus payment (if the case)

4
 Performance bonus approach

Key principals:
 We encourage a culture based on recognition and sustain success and performance: “Pay for
performance”
 Linked to performance – KPIs & Behavior (quantitative and qualitative indicators)
 Based on the employee’s and respective business unit’s performance results
 Discretion of management on adjusting up/down bonuses is assumed
 Top performance is encouraged and rewarded accordingly, (i.e. Excellent and Above expectations highly
differentiated up) while for average performance we apply a more conservative approach

Eligibility:
 All active employees as of 31st December
 Based on role-specific criteria
 Becomes applicable only upon meeting the trigger point (i.e. 100% achievement of company EBITDA
targets)
 Colleagues that are suspended (i.e. maternity) but have worked more than 6 months during the year
 New joiners who have joined no later than March 31 st (at least 9 months within the company)
 For employees with partial working months during the year, the bonus will be pro-rated
 Employees with results below expectations & unsatisfactory won’t be eligible for performance bonus

Bonus allocation is a matter of affordability, company results and individual performance.