"Underperformers" at Ford - You Could Be Next, No Matter Where You Work
"'Underperforming' white-collar workers at Ford will be offered severance pay or asked to take part in a 'performance-enhancement plan ...'" - LinkedIn, October 31, 2022
Employers, of course, establish the
criteria as well as the methodology for measuring this thing called
"performance." Way back in the 1980s, GE CEO Jack Welch introduced
"Rank and Yank." Performance was assessed in a competitive manner
among employees. Those in the bottom tier were terminated. Of course, fear was
a dominant emotion at GE.
Ford is leveraging both the
slowed-down economy and the need to retool skills for the technology of
Electric Vehicles as the strategic justification for its version of rank and
yank. In this situation employees have the option of PIP - that is, a proposal
to improve performance.
Overall, the bar for even
satisfactory performance - not just the kind that merits a promotion, raise,
and/bonus - is being raised. On Fishbowl Consulting there are laments that
after completing the employer-specified targets for the year, the next year's
target could be 10% higher.
Another grim development is that
business owners and contract workers are not exempt from this kind of
accountability. For instance, on one of my accounts there is a quota. The firm
hiring me for the assignment, just like a law firm, tracks the time I work with
their clients through technology. Also like most professional services, there
is an expectation I will bring in new business.
Earning a living through work has become
increasingly stressful. There are fewer venues to use to seek refuge from being
continually measured. The process of performance review has become for many an
angst situation.
That's the stick part of the penalty-reward human resources systems. The carrot part, on the other hand, can be wonderful. For example, prominent law firm Paul Weiss provided off-season bonuses for those junior lawyers who had showcased "commitment." In addition to recognizing achievement, with that initiative the firm's chairperson Brad Karp enhanced the Paul Weiss branding.
Both the stick and the carrot transmit powerful messaging.
Speculation: To get, hold, and move
on to better work we will all have to be excellent at what we do. So, choose
career paths from the point of view of not the old-line notion of passion but
the odds of producing the kind of performance those signing the paycheck
require.
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