Compensation Program
Objective
The objective of the compensations program within Renault Group is to award employees
with an economic inducement comprised of a specific given amount following an
assessment of results in employee’s job practices to recognize the contribution workers
made to the overall operation of the company.
This remuneration is labelled, for the purpose of this compensation program, under the
category of performance compensation as it aims to reward productivity and support to
the outputs generated by the company.
Requisites
For this specific program, employees that can be eligible to receive this compensation are
those who perform their activities in the production department as they are the ones that
can be directly linked with the manufacture of outputs. Employees should as well be able
to demonstrate their work reports in the completion of vehicle batches and internal
assessments in which they display continuous compliance with given working standards.
Evaluation
Employee performance will be assessed using two major criteria. The first criteria will be
done by the supervisor of each of the processes regarding the production line, and it will
summarize the significance of a worker’s contribution in a batch of vehicles.
To evaluate this category, supervisors will score employees using a Likert scale going
from Null contribution to Essential contribution. Each category awards employees with a
different score and it is represented as the following:
Significance Null
Not
Slightly
Average Very
Essential
of
the Contribution Important Important
Important Contribution
contribution
Score
0 points
1 point
2 points
3 points
4 points
5 points
The second criteria will show the likelihood of the worker to finish vehicles on time and
in compliance with the quality degrees assigned by the company. This evaluation will be
based on prior work reports from employees, and it will sum up the history of the
compliance of workers with the tasks of their given area.
A Likert scale will also be used to assess this criterion and it will range from the category
of never to the category of very frequently. The relationship between these categories and
the given points awarded to employees is depicted as follows:
Likelihood Never
to finish
adequate
work
Very
Rarely
Rarely
Occasionally
Frequently
Very
Frequently
Score
1 point
2 points
3 points
4 points
5 points
0 points
This evaluation based on the previously mentioned method will be implemented to assess
employees eligible to be part of the compensation program. Therefore, those who are able
to fulfill the requisites will be subject to this metric.
Supervisors will be asked to fill out the needed parameters regarding the first criteria and
the department responsible for this evaluation, and for the subsequent remuneration, will
fill out the second criteria which is based on already available information concerning
employees’ completion of work.
When both scores are obtained for each applicant, a sum of both assessments will be done.
In total, there are 5 categories in which applicants for the program can fall into.
Employees that are given a score of 5 in both criteria will be awarded with the highest
possible remuneration, while a sum of 1-2 points in total will results in employees
receiving the lowest remuneration possible.
This remuneration consists of an increase of salary ranging from 4% to 8% given the
points that are designated to the employee. A table that portrays this relationship between
the increase of salary and the given points is represented as follows:
Percentage 0%
increase in increase
salary
4%
increase
Total
points
1-2 points 3-4 points 5-6 points 7-8 points 9-10
points
0 points
5%
6%
7%
8%
With this data, employees that are willing to be part of the performance compensation
program can be given the appropriate reward resulting from the contribution they have
had for the improvement of production procedures within the company.
It is important to highlight that this percentage increase in salary, and the scale for each
of the evaluation criteria will be reviewed on a yearly basis in order to ensure that
employees are indeed being rewarded in the most relevant way and to make any needed
adjustments.