In previous assignments, you assumed the role of a performance management consultant hired by Twilio SendGrid to develop a new performance management system. You completed organizational and HR SWOT analyses and reviewed Twilio SendGrid’s performance appraisal system.
In this assignment, you continue to consider Twilio SendGrid’s external and internal challenges and opportunities as you recommend to the CEO a pay plan, a rewards and recognition process, and the basis for a new PM system implementation.
Case Scenario
Twilio SendGrid continues to focus on developing a high number of new products and innovations, making it an increasingly product-centric company. However, some recent failures in new markets for their products have negatively impacted customers, leading to a loss in brand equity. The mediocre customer service levels have led to a deterioration in customer experience overall, making it difficult to maintain a competitive marketplace edge.
Twilio SendGrid’s call center workforce is young and dynamic, typically consisting of educated (professionally qualified) knowledge worker millennials with high technology skills. In the past, to manage this workforce’s expectations, the company made incremental changes to the performance management process in line with the latest industry trends. But business demands on these employees have changed rapidly, as they must learn the nuances of new products and processes in compressed timelines with no room for error.
Most supervisors viewed the performance process as a necessary evil, although some took the process seriously. Limited funding has prevented any serious discussions about implementing a compensation plan, and for quite some time, employees have complained about flaws in the performance evaluation and compensation process.
While Twilio SendGrid leadership has resisted adopting a specific compensation strategy for a variety of reasons, they are now utilizing their SWOT analysis to align strategic efforts operationally and financially to improve the workforce environment.
Preparation
As the consultant expert for Twilio SendGrid’s new performance management system, you have been tasked with identifying specific issues within the call center that continue to negatively impact employee performance levels. From various managers and employees, you have heard that most expect the system to fail just as past programs have done. The root of the problem was that employees considered the programs often unfair and biased.
You recently learned that in the past the organization supported a learning culture, underpinned by values of trust, transparency, and honesty. Twilio SendGrid’s culture allowed the employee workforce to maintain an internal balance and supported training and development opportunities for effectively managing change. A highly developed and structured IT division facilitated quick and transparent communication within the workplace.
However, your review of the most current employee engagement survey results identified several issues within Twilio SendGrid’s call center workforce over the past 18 months:
High turnover. Little recognition or few rewards.
Low job satisfaction. Employees feel they are not a team any longer and are disconnected from management.
Poor employee morale. Employee performance problems (complaints) have not resulted In disciplinary action for underperforming employees. Conversely, high-performing individuals carrying the workload receive no recognition.
Lack of a transparent compensation structure. Bonuses and promotions are based upon managerial review and only lead to possible nepotism and favoritism among employees.
Poorly trained and focused sales team. Employees had been well trained and knew what they must do to get the job done, but now job expectations are not formally set or well communicated.
Lack of succession planning. The company relies on external hiring for senior-level positions, leading to higher recruitment costs, increased training time, and budgetary factors.
To ensure employees are held to high standards of performance and to promote their participation, a new incentive-based compensation system must be designed and implemented that supports SendGrid’s competitive advantage.
Instructions
In a 3-4 page Word document, complete your responses to Parts 1, 2, and 3.
Part 1: Pay Plan
Propose a contingent pay plan for Twilio SendGrid’s call center that considers key success factors identified in your organizational SWOT analysis, such as the culture, strategic business objectives, mission, and vision.
What type of compensation pay (CP) plan is likely to be successful? Explain the rationale behind your choice.
Part 2: Recognition and Rewards Process
To enhance the strategic directions of improved customer service, and productivity, it will also be helpful to focus on other incentives and nonmonetary rewards specifically for SendGrid’s call center.
Describe three approaches that Twilio SendGrid can implement to recognize and reward employees.
Describe three legal implications that may impact Twilio SendGrid’s ability to ensure a fair and equitable recognition and rewards process.
Part 3: Implementation
Describe at least three primary HR actions that must be taken before the performance management system can be considered effectively implemented in the call center workplace.
Frame your description as a one-page memo to the CEO.
Discuss these primary HR actions based on your HR SWOT analysis.
Discuss the impact on the call center workforce.
