Goldman Sachs is to place a greater focus on employee recognition programmes
Details of its plans have been outlined in a report issued by the firm’s Business Standards Committee. The report’s recommendations, which include employee evaluation and incentives, have been approved by the firm’s senior management and the board of directors, and implementation has already begun.
These include increasing the emphasis on evaluation criteria relating to risk management in the firm’s annual performance review and compensation, and other incentive and recognition processes.
Goldman Sachs intends to link its overall recognition programmes, including compensation, mobility assignments and promotion, with its focus on client orientation, reputational excellence, teamwork and professional excellence.
The report stated: “Recognition can […] motivate people to behave in accordance with the highest standards of the firm. The converse is also true: when recognition is given to those who fail to meet the expected standard of behaviour, or when deserved recognition is not given consistently, it can have a negative impact on employee behaviour, and ultimately weaken the firm’s culture.
“Communications during performance reviews, promotion and compensation conversations must be clear and specific so that our employees understand the correlation between recognition and behaviour, particularly behaviour related to leadership, culture and values.”
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