Infosys Opts for Target-Oriented Appraisals Throughout the Year with ‘iCount’
IT companies moving towards Individual Performance driven appraisals
Seems like all major IT firms worldwide are losing their tryst with ‘bell cuve’ appraisal system. One by one nearly every major firm from this sector is ditching the system for alternatives. The latest addition to that list is Infosys, which has decided to put a target-oriented performance management system ‘iCount’ in its place. Unlike previous system in which performance of employees was evaluated on annual basis, this new system aims to evaluate their performance throughout the year. Employees will be given feedback based on that evaluation and high performing employees will be rewarded throughout the year.
What Infosys is trying to do with this change is shifting its focus from ‘Relative performance’ to ‘Individual performance.’ Speaking on the development an Infy spokeswomen said that company devised Design Thinking to come up with this system. In new system employees will be provided several ‘short-term but important targets’ throughout the year, and how well they achieve those targets will become the basis of their rewards in the company. The targets may be anything from bagging a big client to managing any particular event, depending on the roles of employees. Individual top performers will be rewarded disproportionately, especially executives who contribute more revenue to the company.
The message that company wants to send with this system is that every Infoscion matters and contributes, therefore they’re putting this new system that will allow continuous feedback from peers, managers and stakeholders. The system will also give more flexibility and power to managers while also improving company’s high-performance work culture in the meantime.
Recently IBM has also shifted to a similar system dubbed Checkpoint, which will appraise employee performance four times in a year. Before Checkpoint IBM was also using a system based on the methodology of annual appraisals. Rival IT consultancy firms Accenture and MphasiS had also given up on bell curve system last year. The biggest giants of Technology sector like Adobe, Google and Microsoft have also ditched bell curve a long time ago. Though this system continues to be a part of 70 – 80 percent companies in India, the IT sector is quickly realizing the fact that this is not the right system for them.
Here’s a quick look at performance management systems being deployed by Top 8 IT consultancy firms operating in India:
|Infosys||Target-achievement based system|
|Tech Mahindra||Bell curve|
|MphasiS||Target-achievement based system|
|Accenture||Target-achievement based system|
|Mindtree||Long-tail method (also known as Power Law Distribution method)|
As you can see, four out of 8 largest IT consultancy firms working in India have rung the final bell on bell curve, and others who have not are also considering other options. Majority of those who dropped bell curve have opted for target based performance appraisal method, the only exception being Mindtree.
The possibilities for career advancement in this model seem quite promising – if you can continuously achieve those specific targets throughout the year. Therefore, If you’re an employee working at any of these firms, you should stay prepared for this kind of appraisal system. The sooner you get ready for it, the better it can be for your career.