Leadership announced the new 2020 STI structure yesterday via email from Hans. Many factors will contribute towards next year's STI calculation. Curious what the general reaction is to this.
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It’s brilliant
Hoping the next Pulse survey has an open ended question on the new STI algorithm. I will need a couple of pages for that one.
The STI calculation is now a thinly veiled communique that your next STI will be vastly reduced from the last two years. And, they’ll blame the economy and the Coronavirus.
For GNT, 50% of the organizational metric is Network Expense. They are literally incentivizing GNT management to RIF...that's the only real way to cut the network expense effectively.
It's a double edge sword though...the more they cut, the less relevant their jobs are.
Diversity and hiring, yes, I understand. When it comes time for a reduction in force, would it help Verizon's diversity metric along with everyone's bonus if we limit our choices to the non-diverse employees?
It's straight up a cost cutting measure with a hint of lottery sprinkled in. You could get 200% in a category...or nothing. It's a gamble and completely out of an individual's control. I could come in every day give 110%, heck, even 200%, but it has zero impact on any of the metrics they are using. Absolute garbage.
Imagine having your bonus impacted by diversity and carbon offset. You have less control over total rewards than ever before.
Initial reaction from our team wasn't one of positivity, especially when so many goals are tied to 5Yee and related expenses ...
Most CEOs don't wait until 4:51pm in the business day to announce good news. The only thing clear is that volatility goes way up. One guy showed me his LoB's perormance metric and we laughed! To get the 100% payout level, they have to outperform a multi-year trend line. In the opposite direction! Poor fella.
If it were any company other than Verizon I would agree that it looks like a way to cut the bonus. But considering that Verizon has given management an extra weeks vacation, the generous bonus this year and even more so last year, I believe this will be an opportunity to see even bigger bonuses this time next year.
That was the first time I even saw the old formula. Will be interesting to see how it plays out, but hard to image that it will work out in employees favor.
A thinly veiled method of reducing costs.