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A new approach to employee reviews

On this week’s HCTV, Campari Australia’s Vijay Kashyap reveals how the company has changed its review process to eliminate employee fears.

Video transcript below:

Vijay Kashyap, HRD, Campari, Australia
Vijay Kashyap:
 The birth of Campari, Australia happened in 2009.  And from 2009 to 2013, these have been tough times for businesses.  But while we talk a lot about tough times for businesses, has anybody paused to say what is going on in the minds of individuals.  And the facts are very clear, people are scared.  People are scared about losing jobs.  People have mortgages to pay and they want continuity and certain sorts of security.

Caitlin Nobes:  Vijay Kashyap and his team at Campari spent 2013 thinking about how they could make their performance review process less stressful and more beneficial for both the business and its employees.   

Vijay Kashyap:  A traditional performance review what it does is, it brings out insecurities in people because eventually you come out with some gaps or weaknesses.  So what we did is we recognised the fact that the environment globally and in Australia is tough.  So how could we engineer a performance management system where fear is taken out of individuals.

Caitlin Nobes:  Kashyap says that the key to changing the way the employees thought was making two simple changes.  

Vijay Kashyap:  Firstly we have an annual bonus system, which pays people for performance.  We have ensured that the KPIs for that are set in isolation of the performance review.  We work on a calendar year concept.  So at the end of December you know where you stand and how much money you will get on the bonus.  But we shifted our review to the month of August.  Now that separates actual moneys which reward behaviour or performance to having an open discussion and our performance reviews are titled not performance reviews, but they go under the tagline of what do you want to be famous for.

Caitlin Nobes:  These changes have had huge benefits for both employee morale and the company’s people management strategies.

Vijay Kashyap:  And therefore we have done two things.  We’ve delinked giving salary increases to the actual time when you are having a discussion on weaknesses and development points and we have taken the fear out by talking about what people want to be famous for.  So it doesn’t put pressure on people to say that if I don’t get promoted I am a loser.  You want to be famous for whatever you want to be and then we support through an organisation effort by telling people that if you want to be famous for what you want to be famous for, these are the competencies you need to focus on.  This is what you need to develop on.  This also helps calibrate people’s expectations, you know.  So the salesman if he has the aspiration to be a Sales Director, understands that there is a journey which he or she will have to take.  The organisation provides the framework.  We have also removed the fear from having these discussions openly because you are not going to lose your job at the end of the day.