Employee Rewards, Recognition and Appreciation Policy
Standard guidelines regarding how Team Performance Evaluations will be conducted
Version 2 (In Effect from Feb 28, 2019)
Our mission is to empower our employees to compete with their equivalents in Silicon Valley, Beijing, Seoul, and Tokyo by 2023 hence making performance reviews an essential for motivating, managing and directing the team members in the right direction. McKinley & Rice’s Performance Evaluation (PE) process has been designed to provide a vital link between the organization’s business plan, its vision, guiding principles, and individual staff members. It is also intended to ensure that company’s goals and objectives flow from the top of the organization to the personal objectives of each individual. It is integral to fostering an engaged and productive workforce, recognizing and rewarding good performance and managing under performance.
I. Performance Evaluation Policy
The purpose of this policy is to ensure that a consistent approach is followed for conducting performance reviews, and that job-related skills, knowledge, and employee competencies and behaviors, are evaluated and compared against set standards and the business objectives. The appraisal process will be used to identify the individual’s development needs and support the objectives of the Personal Development Policy (PDP).
We will implement our appraisal arrangements on the following principles:
Equality of Opportunity: All employees should be encouraged and supported to achieve their potential through clarity of expectations and job role, regular feedback, performance review and provision of relevant development.
Consistency of Treatment and Fairness: We will act to ensure our performance appraisal process is fair, non-discriminatory and that staff are treated with fairness.
High Standards: We believe by setting appropriate and challenging standards of performance and providing regular feedback and development opportunities, all staff have the potential to continually improve their performance.
Work — life balance: All employees are entitled to a satisfactory work — life balance and performance appraisal are an appropriate mechanism to facilitate this.
Pay and Rewards: Pay progression for employees should reflect their overall contribution to the organization both as individuals and as team members.
Performance appraisal discussions will be held with the COO on a quarterly basis. Feedback would be taken from the respective project clients, technology/design leads and the team members working on the same projects. All discussions pertaining to performance evaluation would be held in private. The only exception to this would be the training or guidance needs of the team, which will be administered by the COO. All appraisal documents would be issued to both parties prior to the discussion, in order to allow time for both parties to reflect and prepare. These will provide a framework and make a basis for the discussion.
The appraisal discussion will allow an opportunity for both the appraisee, and the appraiser to reflect and comment on the previous quarter’s achievements. The appraiser would be accountable for giving the employee constructive, timely and honest appraisals of their performance, which should consider both the goals of the organization and that of the individual. The discussion should be a positive dialogue and will focus on assisting the appraisee to acquire the relevant knowledge, skills and competencies to perform his/her current role to the best of his/her abilities. The appropriate forms will be completed and signed by both parties. The appraisee will be given the opportunity to note any comments that he/she does not agree with and complete a self-assessment. The Employee Performance Development Plans (PDP) would be created for the employees whose scores fall in Category-2 as explained below. The PDP’s will reflect the appraisee’s aspirations and the organization’s requirements and should align personal and organizational goals. The organization will support the individual to achieve these goals during the forthcoming quarters. Any training needs, future training requirements, planned qualification enhancements, development opportunities and career planning should be discussed in the light of the PDP.
Performance Evaluation Parameters:
As per the vision of McKinley & Rice, we have identified 3 major categories that will guide the appraisal process. Although, the performance of each employee will be evaluated quarterly, the appraisal will be given at the end of the year. for details Please refer: https://medium.com/seminal/company-policy-standards-for-employee-performance-evaluations-46629f950207
Substance: This category focuses on Quality. We value the quality of work above everything else. The parameters considered here are Quality, Project, Demos, Timelines & Deadlines, Client Feedback
Procedure: This category emphasizes on work methodology & professional behavior of employees. The parameters considered here are Weekly Reports, Asana Boards, Attendance & Leaves, Team Feedback & Mentoring
Self Enhancement: We value both skill and self-enhancement. The parameters considered here are Skill Assessment Tests & Extra-Curricular Activities
The default consequences of performance evaluation scores will be as per the standards below. Nevertheless, the COO will have the discretion to change the end results at will.
Category 1: 0 < Performance Scores < 40 ; Termination
Category 2: 41 < Performance Scores < 60 ; Personal Development Plan
Category 3: 61 < Performance Scores < 80 ; Tier-1
Category 4: 81 < Performance Scores < 100 ; Tier-2
II. Bonus Policy
We consider our employees important and hence like rewarding them whenever possible. Our employee bonus policy facilitates giving out bonuses to our top achievers. It further clarifies how we choose which employees to reward and the way we calculate the bonus amounts.
Bonuses can be either discretionary or non discretionary:
Non-Discretionary Bonus: Our company rewards employees for outstanding individual performance, as well as their contributions that help us achieve company goals. Non discretionary bonuses are promised to employees and guaranteed to those who meet our established criteria for the bonus as mentioned below. However, only the employees whose performance evaluation scores fall in and above Category-3 would be eligible for these bonuses.
E 1- Whitepapers: Based on the market trends, employees are encouraged to write 2–3 pager white paper delivering a new POV which could act as the basis for further development for McKinley & Rice projects and clients.
E 2- Career Oriented Initiative: Employees are encouraged to achieve higher qualifications to expand their knowledge and enhance their skill base. Degree, Diploma, Certification courses for a duration of more than 6 months would be considered for this purpose.
E 3- Product/App Development: Innovative Side Projects (works together with Innovative Side Projects and Product Buyout/Licensing Policy).
The amount of bonus (based on the monthly basic salary) is given below:
PE Scores in Category 3 or 4 (PE 3/4): Up to 20%
PE 3/4 + E 1 or E 2 or E 3: 21% to 40%
PE 3/4 + Achieving any two of E 1, E 2 and E 3: 41to 79%
PE 3/4 + Achieving all E 1, E 2 and E 3: 80 to 100%
Discretionary Bonus: Discretionary bonuses are determined at the company’s sole discretion. They aren’t promised to employees and we can’t guarantee anyone will receive them.
~Milestone Bonus: This bonus will be given for completing an important project before the deadline. This kind of bonus deserves mention in your resume.
~Regularity Bonus: This bonus will be given if you are regular at work and do not avail any extra leave beyond the annual paid leaves.
~Retention Bonus (We pay if you stay): This bonus will be given if you stay with the company for at least 3 years or after 5 years, 7 years and 10 years.
~Spot Bonus: It’s more of a surprise announced by the COO on the spot as per his will for truly exceptional behavior of an employee.
~Referral Bonus: Referral Bonus are offered to employees who refer job candidates who get hired & complete a probation period with the company. (Bonus amount will be 5000 for the Junior positions & 10000 for the Senior positions.)
Note: The amount of discretionary bonus would be decided by the Chief Operating Officer (COO) at the end of the year depending on the achievements of the employee. Every employee needs to have the proof of their achievements to qualify for the relevant category.
III. Employee Personal Development Plan
In the modern competitive environment, employees need to replenish their knowledge and acquire new skills to do their jobs better. This will benefit both them and the company. We want our employees to feel confident about improving efficiency and productivity, as well as finding new ways towards personal development and success.
Employees, managers and the COO should all collaborate to build a continuous professional development culture. It’s an employee’s responsibility to seek new learning opportunities. It’s a lead’s responsibility to coach their teams and identify employee development needs. This policy though open for all is mandatory for those whose scores fall in Category-2 of Performance Evaluation.
Both employees and their leads (Technology/Design) are responsible for continuous learning. Employees should show willingness to improve by asking their managers for direction and advice. The leads should do the same with their own superiors, while encouraging and mentoring their subordinates. Employees and the leads along with the COO are responsible for finding the best ways to implement PDP. They can experiment with job rotation, job shadowing and other types of on-the-job training (without disrupting daily operations). The leads should evaluate the success of training efforts. They should keep records for reference and to better the scope and implementation of the PDP. All employee development efforts should respect cost and time limitations, as well as individual and business needs. Employees should try to make the most out of their trainings by studying and finding ways to apply knowledge to their work.