IBM Consulting announced a significant shift in its performance management approach, planning to conduct annual performance reviews that evaluate employees based on three key dimensions: business outcomes, skills, and behaviors. This system, utilized through SAP SuccessFactors, categorizes 15% as top performers who will receive doubled GDP funding, while 70% are deemed core and 15% as low performers. This restructuring follows a noted need for better recognition of talent amidst declining consulting revenue, with goals to enhance transparency and align employee performance with strategic company objectives.
IBM plans to refine its performance management by aligning pay with performance using a rating system to categorize employees and link it to bonuses.
With new performance reviews held annually, IBM seeks to establish clearer distinctions in employee performance to enhance rewards for top performers.
The consulting division revenue fell to $20.84 billion, prompting IBM to adjust its strategies and ensure alignment between employee contributions and company goals.
IBM acknowledges shortcomings in recognizing top talent and aims to revamp its incentive program to better reward exceptional performance among employees.
#ibm-consulting #performance-management #employee-evaluation #incentive-programs #corporate-strategy
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