The term Performance Management (PM) denotes the process by which we define, observe and assess the contribution of each employee to the organisation. This assessment is given in relation to a set of predefined indicators and is critical to the success of both the company and the employee him/herself.
The PM is a unique and critical moment for the development and orientation of each employee. During the process, particular value is given to feedback, which provides a transparent and open dialogue between management and employee, first in the start-up phase in which the targets are set, and then in the closing phase, when the results achieved are assessed.
The Performance Management process involves all Pirelli staff worldwide, including Executives, Managers and White Collar Employees.
The year 2014, as regards the closure of the previous year, confirmed a redemption rate of the process, that is, complete assessment profiles with respect to the total of open profiles equal to 95%, within which 94% of women successfully completed their performance Management process. Alongside this significant quantitative result, there is another consideration linked to the quality of the assessments: the introduction of Calibration Meetings. These are meetings organised by the managers of individual functions, Business Units and countries, with those they report to directly and the HR managers in question. During these meetings, the assessments of people who belong to that specific organisational unit are shared and pooled, with the aim of ensuring a shared and balanced distribution of the assessments, making the process more homogeneous and balanced.
The Talent Review process aims to place “people in the right job”, namely to ensure business continuity through the coverage of strategic positions with our best talents.
Key positions are those positions that have a direct impact on the strategic success and competitive advantage of the organisation. Each of these positions also includes a vacancy risk identification in the following 12-18 months, in such a way that concrete mitigation actions can be implemented. For Pirelli, “Talents” are employees who, in addition to having demonstrated positive performance in the previous 3 years, possess the potential to hold, immediately or within the next two years, key positions within the organization. In fact, they represent the future of the company for the coverage of strategic positions.
Pirelli's focus on talents is also demonstrated by the numerous skills assessment projects concluded in 2014, following increasing focus on the analysis of the talent of people to support the company strategy.
The talent management process also includes meeting and discussion sessions between managers, which aim to share and standardise the criteria for the definition of talent within the organisation. These meetings involve the active participation of all key interlocutors of the organisation, to guarantee the strong commitment of the company towards the management of people and its talents. During 2014, the Talent Review process identified 311 “key positions” and 208 “talents”. In the 25 meetings held to discuss the talents and the key positions, more than 250 managers from around the world were involved.
Coverage of key positions is solid, in fact 62% of the positions are not at risk of vacancy in the next 12 months. Pirelli is also established as a company with a strong predisposition to developing talent from within: in fact 95% of the people who hold key positions have grown and have been promoted from within.
Even Pirelli’s pipeline of talents is consolidated; in fact, they come from 20 different nationalities, 58% already hold a key position and 52% of them are ready for an assignment to another key position.
The goal in 2015 is to strengthen the pipeline of talents and develop the analysis involving more and more people from all over the world. Focus is also being maintained on the development and consolidation of career plans, with the aim of providing the means for structured growth within the organisation and mitigating the retention risk of Pirelli talents.