Accenture, the global outsourcing and IT consulting firm is likely to introduce a dynamic process for rewarding its employees. The company has finally dissolved its one-time annual performance review system.
According to the Accenture CEO, Mr Nanterme, the company’s employees will now be receiving timely feedback for their undertaken assignments throughout the year.
Market analysts say the HR managers at domestic giants, such as Infosys and Tata Consultancy Services would be closely monitoring all these developments, as they are in direct competition with Accenture.
Global biggies such as Adobe and Microsoft have earlier junked their employee rankings. Hence, Accenture is not a pioneer in introducing an alternative model for the performance appraisal of their employees.
However, this sudden move by Accenture is definitely of some significance, as it is likely to have a considerable impact on a huge amount of IT employees in India.
After TCS and Infosys, Accenture is perhaps the biggest employer (private sector) in India. Nearly 3.3 lakh employees of the company are based in the country.
According to an HR manager, this move by Accenture can be huge development for India. If the move helps to boost employee morale, more companies would be interested and opt for such a method of performance appraisal.
Junking the old method of appraisal in which the employees were categorized into underperformers, outperformers and average performers, many companies can move ahead to motivate and increase the morale of their employees.
Companies are now resorting to alternate models of measuring the performance of their employees, in order to reduce disappointment and involuntary attrition.
If successful, this model may help the Indian IT and BPO companies to minimize attrition, which spikes in the June quarter, when the annual increments are declared.
TCS saw its attrition rate spiking at above 15% in the 3 months to June. On the other hand, Infosys also reported a considerable rise in its attrition rate at 14.2%.
Accenture’s announcement for such a move became a hit among its employees. Sanjeev Vohra, the company’s global managing director mentioned it as a ‘good move’ on Twitter. Sandeep Sharma, who is the digital marketing specialist at the company, said that every Indian IT company must follow the move to reward its employees.