Performance Management Principles
1. Objective- and result-oriented, adhering to the objective and fair evaluation principle
2. The performance of all staff will be evaluated. The performance management system, as the most important value evaluation system of Inovance, objectively appraises the staffs' performance. The result will be used as the basis for deciding the promotion, demotion, salary increase/reduction, and whether to stay or leave.
3. Performance management embodies the principle of both reward and punishment. Employees with good performance will be given performance incentives, while those with poor performance will be given performance constraints or be fired.
Department Performance Appraisal System
1. Appraisal period: H1 (January – June) & H2 (July – December) (semi-annual appraisal for tier 1 and tier 2 departments & monthly appraisal for employees)
2. Performance plan: All departments and employees are required to make an annual performance plan at the beginning of each year, including KPI projects, targets, and work plans. The performance plan was reviewed and imported to the performance system in the first month of each appraisal period (H1/H2).
3. Performance appraisal: The employee to be appraised should complete the data statistics of the performance targets in the current appraisal period within the required time and are given a performance rating. The performance rating includes five levels: outstanding – A, excellent – B+, good – B, to be improved – B-, and layoff – C.
4. Performance feedback: The immediate supervisor should complete the performance interview with the department colleagues within the required time. Interviews about the job performance, improvement measures, and the plans for the next appraisal period are arranged within each tier 2 department.
5. Performance incentive: Each employee will be given an annual performance evaluation by the department manager based on the performance in each period of the whole year. In the annual bonus calculation, different bonus coefficients will be given according to the employees' different performance ratings.
6. Performance constraint: The employee graded last in the performance evaluation will be laid off from his/her position. Those whose performance is C or whose performance is C for two consecutive periods, the manager of the tier 2 department has the right to apply them to await the job assignment. Full-time training will be arranged for them. If the employee is still unqualified or proved to be incompetent for the new position after passing the training, the labor relationship will be terminated.