SAP confronts employee dissatisfaction due to new evaluation system

12/7/2023, 2:00 PM

The Dax Corporation is implementing a new evaluation system to monitor the performance of its workforce and identify inadequate performances, thereby increasing the pressure on employees.

The workforce of Dax corporation SAP is upset about the management's recent plans to introduce a new evaluation system. The system, called 'Winning Culture', is intended to evaluate the performance of employees and classify them into three categories. Among other things, there is discussion about whether attendance should be increased to three days per week. These measures are causing discontent among the employees and putting the relationship between management and workforce to the test.

SAP is usually considered an attractive employer that regularly ranks high in rankings. But currently, the management led by CEO Christian Klein is causing a sensation as it wants to realign the personnel policy. The introduction of the new evaluation system 'Winning Culture' is supposed to be part of this realignment.

The system provides for managers not only to evaluate employees, but also to divide them into three categories. In this process, high performers, known as 'Performers', should be given special consideration, while employees in the lower category, the 'Improvers', could come under pressure. Furthermore, it is being discussed to increase the mandatory attendance to three days per week.

These measures are a burden for the workforce, especially at a time when trust between management and employees is already starting to erode. The planned changes are therefore viewed critically and seen as a potential tool to get rid of employees. The reintroduction of a classic performance evaluation system, which also takes into account the behavior of employees, is also controversial.

SAP to reintroduce a grading system for performance evaluations, including development and performance areas

The changes are also criticized by employee representatives, as they fear that employees will be stigmatized and trust in SAP culture will be destroyed. Even the outgoing Chief Human Resources Officer of SAP in Germany, Cawa Younosi, has publicly distanced himself from such measures. However, the company's management sees the planned changes as an improvement to the existing evaluation system.

The relationship between management and the workforce is being put to the test by these discussions, while the corporation is currently in negotiations with the social partners. Various topics are intertwined, such as attendance requirements and the bonus system. The impact of the COVID-19 pandemic on SAP's way of working also plays a role. While the company initially sent a large portion of its employees to work from home at the beginning of the pandemic, it is now advocating for more presence in the office.

The management aims for a hybrid model that allows for a good balance between office presence and working from home. The goal is to strengthen informal connections between employees and drive innovation. However, there are considerations to require employees to be more present, which causes discontent among many employees.

The negotiations between management and co-determination bodies are complex, as various topics and interests are interconnected. It remains to be seen how the situation will develop at SAP and whether the planned changes will actually be implemented. However, it is certain that the relationship between management and employees will be severely tested, and this at a time when trust has already been undermined.

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