A leading global food manufacturer has reportedly overhauled its employee bonus program as part of a broader effort to revamp its corporate culture.
Under the new structure at Nestlé, people are familiar with the movement recently told BloombergWorkers deemed “ideal” can receive bonuses up to 150% of company goals, while those at the other end of the spectrum, or “dissatisfied,” will receive a maximum of 50% of the goal—or no bonus at all.
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Top bonuses were previously capped at 130%, but more importantly, according to the report, the changes represent a dramatic shift from a culture in which nearly all 271,000 employees receive bonuses of at least 80% of company goals.
Additional changes include expanding the rating methodology from three levels to six, and tying bonuses to company and division performance as well as individual measures. Sales volume is considered particularly important.
A company spokesperson told Bloomberg that the idea is to “really grow people” and “change people’s behavior.”
Sales at the Swiss multinational food giant, which owns the KitKat chocolate, Nescafé coffee and Purina pet food brands, among many others, have declined in recent years. The company is Looking to sell Its ice cream and water businesses, among other assets, and announced these plans Cut about 16,000 jobs.
Chief Executive Officer Philippe Navertel, who was appointed to lead the company in September, predicted changes in ratings next month. to comment In a video that it will be “easy” to see which workers are performing and promises to “not protect” those who are not.
“We will be ruthless in our assessment of our people,” he added.
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