Appraisal System in

Ernst &Young

By GROUP 3
Hrangbung Darthang | Kavita Patil | Krishnakant S. Maheshwari
Mansi Agarwal | Monica Syal | Neha Sheenam | Risha Agarwal
 About Ernst & Young

Ernst & Young is a One of the largest 270,000 employees in

multinational professional services over 700 offices around
professional services firms in the world and 150 countries
firm headquartered in is one of the "Big Four" worldwide
London, UK accounting firms

Global leader in The annual revenue of There 2020 Vision is to

assurance, tax, EY in 2018 was make EY the leading
transaction and US$ 34.8 billion global professional
advisory services services organization
Evolution of company overtime

“ HR is at the heart of our business strategy. By transf

orming our practices, we can gain visibility, transpar

”
-40 ency, and the opportunity to manage our people and
our business more effectively. We can then better su
pport our clients and drive revenue faster.

Antony Shields, EY Global HR Systems Lead

 HR Practices in EY
• It is a program for their strongest leadership talent Accelerated
• Accelerated the development of leadership and business skills leadership Program
• Combination of Formal learning (skills workshop) and informal
learning (on-the-job experiences)

• It is Performance appraisal system in which employee get feedback 360 Performance

from all the people they work with Appraisal System
• The employee who receives the feedback will also be required to fill
out a self assessment which again might consist of the same
components.
• This system is used to get an improved understanding of every one’s
strengths and weaknesses

• The act of making different people, plans, situations, etc. suitable for Rank Harmonization
each other
• Right people in the right place at right time will create area
effectiveness
 Bell Curve Performance Appraisal
(Earlier Practice at EY)

Bell curve appraisal It categorized people

system was a forced based on their
ranking system imposed performance, and
on the employees by the rewards or penalizes
management the employees
accordingly

The Bell Curve used to

segregate all the The percentile varies
employees into distinct with the company
baskets — policy; the top 20%,
•Top middle 70% and the
•Average and bottom 10%
•Bottom performers
 Limitations of Bell Curve
Performance Appraisal

The Bell curve model The managers were In the bell curve model Employees who had
turned out to be too forced to put the managers can give actually performed
rigid in some cases employees in specific only a limited number exceedingly well
ratings just for the sake of employees in the top through the year were
of bell curve performers category sometimes forced to be
requirements categorized in the
Average performers’
This most of the times Company have also It also lead to a high category for some valid
lead to loss of morale seen complaints by attrition rate because Bell curve requirements
among the employees employees about single people were always of
ratings being given and the impression that
constant comparisons they will be shown the
with a certain set of door at the slightest
performers mistake
Need for Change in Appraisal System

Halo effect
The halo effect can be the result of any number of things like:-
• employee performing a particular task very well very early on creating a lasting good impression
• It could be a shared hobby or interest that creates a bond with someone in a position of power
• It could be that the employee was recommended to be hired by someone in a position of authority, creating
an instant good impression before even meeting the individual

Biases
• Cognitive bias: both in the workplace and out. We tend to make quick judgments and decisions based on
past experience or limited information. This tendency is good in general, because it helps us navigate daily l
ife, but it can lead to biases that can occasionally lead to unfair treatment
• Biases affect outcomes: HR also needs to know that this and other biases may affect outcomes. Performa
nce reviews may be impacted. Disciplinary proceedings may be impacted. Training, can help, but it may not
eliminate it—and HR needs to be aware of that.
Shift to New Appraisal System
In year 2017, EY shifted from bell curve appraisal system to new performance appraisal
system

It was effective from July onwards

In the new system an employee is not only evaluated by its manager, but also by
colleagues, juniors, seniors and even by clients

Feedback is collected quarterly

Employees are given a deadline of 2 ½ months to fill all the feedback form and submit

In the new system, EY is focusing more on Online feedback system than general peer
review

The new system, considers different dimensions of an employee's performance - business

results, impact on client success, innovation, personal responsibility to others and skills
New System
360 performance appraisal
360 Degree Feedback is a
This typically includes A mixture of about eight
system or process in
the employee's manager, to twelve people fill out
which employees receive
peers, and direct reports an anonymous (optional)
confidential, anonymous
online feedback form that
(optional) feedback from
asks questions covering
the people who work
a broad range of
around them
workplace competencies

The feedback forms The person receiving The 360 feedback system
include questions that feedback also fills out a automatically tabulates
are measured on a rating self-rating survey that the results and presents
scale and also ask raters includes the same survey them in a format that
to provide written questions that others helps the feedback
comments receive in their forms recipient create a
development plan
Insights from existing employees
EY- India EY- Global
 Benefits of new System
Encouraging culture of Regular feedback enables Employees have an
feedback and Recognition and encourages quick option to solicit feedback
that supports collaboration. remedial actions from their
peers/employees

Organization may surface potential issues

by examining the differences between man
ager and peer review data

Increases accuracy of Surfacing hidden talent as

Individuals are more
likely to take action on
developmental feedback
as they become
accountable to their
peers
Performance Ratings as
integrating feedback
from different people
improves manager’s
ability to provide
accurate ratings
insights offered by peers
sheds light on unique skills
and capabilities like
leadership, networking, etc.
that might be missed during
traditional process
 Evolution of company overtime
EY now uses SAP® SuccessFactors®
solutions to standardize onboarding,
talent management, professional
development, and performance
management functions across all its
global, culturally diverse locations.
And with the continuous performance
management capability in the SAP
SuccessFactors Performance & Goals
solution, EY now has a critical tool to
dynamically provide feedback on a
regular, ongoing basis.
With SAP SuccessFactors solutions,
EY can now quickly assign the right
people to the right client
engagements – increasing
productivity, customer satisfaction,
and profitability
With its mobile and self-service
functionality, this solution helps
confirm EY’s people are continuously
providing business strategy, driving
revenue, and building brand
Setting Up a Global Workforce for Success
with SAP® Solutions

To help its global workforce transform its clients’

businesses, EY transformed its own HR infrastr
ucture with easier-to-use SAP SuccessFactors s
olutions. Recognizing HR as a strategic revenue
tool, EY has now provided its people with mobil
e self-service solutions that drive success .
Thank you