Sometimes there is a perceived problem in being fair and balanced while at the same time wanting to differentiate between people on the basis of their performance. Bekaert does not see a contradiction here. Rewarding people for performance can be done fairly and consistently. Targets and standards for everybody can be established at every level, and results can be measured accordingly. Rewards for the individual or team can differ substantially, depending on their actual achievements. We deliberately made it possible for all our managers throughout the world to achieve greater pay differentials based on results. Besides when setting company-wide targets, it is also important to be fair in ensuring that sufficient management time is spent on reviewing and validating performance. Finally, we strongly believe that transparency in standards and what we expect does have a lasting effect on everyone’s motivation and job satisfaction.
Driving performance within a global organization means more than just providing attractive bonus opportunities. We at Bekaert have long experience of making practical use of goals in our annual business planning. We have a well established practice of translating business goals into particular targets and then turning those into individual key performance indicators. The manager plays a critical role in ensuring that all team members have a clear understanding what is expected from them as their contribution to implementing the plan. This exercise not only sets the right targets, but also the criteria for measuring success.
These performance standards, already established in advance, are what decide the reward when we come to evaluating which team has been successful or which individual has achieved his targets. Basing reward on performance is strategically important from the point of view of motivation and fairness. When the standards expected are clear, everybody understands why there are differences in salaries and bonuses. It also provides tangible recognition of the hard work and extra effort that brings success.
We keep our people informed about those global reward principles, and make sure they are incorporated into any local remuneration program.