Bupa Australia has implemented a performance management solution that underpins their pay for performance agenda, matches the requirements of their current incentive schemes and includes the flexibility to change rules, criteria and processes organically.
Bupa Australia’s primary focus is on improving health outcomes for customers. It has received several HR industry awards for innovation and best practice arising from the alignment of their people’s goals with the desired outcomes for the customer. Bupa Australia employs over 2,500 people across its insurance, optical care, health coaching and wellness divisions. The diversity of businessess and services provided is reflected by an even more diverse range of employee positions, skills and situations.
Bupa Australia recognised that effective performance management is a key enabler for ensuring that people are performing at their personal best and has developed a strong and transparent ‘pay for performance’ remuneration strategy. The pay for performance culture is carefully fostered. Bupa train all HR Business and Recruitment Partners, ensure managers are inducted into the performance culture, support the managers but hold them accountable, drive performance through clear links between achievements and bonus awards and ensure all systems re-enforce the strategy.
Bupa’s existing systems for managing performance consisted of a combination of Excel-based scorecards, a scorecard Library database and manager instigated performance discussions. The Excel scorecards limited the ability to track, analyse and report upon the process across the organisation while other elements of their performance workflow had become unstable, were not user-friendly and performed inadequately during times of peak-usage. The HR team had concerns about the ability of the systems to meet operational requirements.
Bupa needed a performance management system that would replicate the existing scorecard and scorecard-library functionality, manage the workflow between managers and their teams, incorporate specific incentive-driven functionality as well as deliver the added functionality of a standard 'off the shelf' system. Not only did the system need to meet specific immediate requirements but it had to include the flexibility to adapt to organisational changes in the future.
The Selection Process
Having made the decision to implement a performance management system, Bupa set about the selection process. Demonstrations by the leading performance management system vendors were arranged with submissions assessed against system functionality, customer service and value for money. From a systems functionality perspective, Bupa had very specific requirements and could not risk ‘bending’ their established processes to fit within a vendor’s framework. It was also critical to Bupa that they choose a partner who could offer genuine after-sales service by people with direct and ongoing understanding of Bupa’s performance culture.
It was for this reason that Remesys was invited to present R.Performance. Although R.Performance had only recently been released, Remesys were already a trusted software partner with a proven service track-record.
Remesys recognised that Bupa would require a unique, sophisticated and highly configurable performance management solution to achieve their aims. Remesys’ understanding of Bupa’s processes, coupled with years of outstanding service in delivering R.Review, Remesys remuneration review software, gave Bupa the confidence to partner with Remesys for performance management.
Remesys provided Bupa with direct access to an experienced implementation team that was involved in all phases of the project, from scoping to implementation and training.
The solution was rolled out in January 2012 and has since been used by managers and their teams across the organisation. The system’s flexible design has enabled some innovative uses. Although R.Performance allows HR Admin to construct scorecard templates which target specific roles or divisions, Bupa has instead, elected to let their people construct their own scorecards in collaboration with their manager in the system’s first year. This will allow Bupa to analyse the performance and behavioural objectives entered into the system and give Bupa tremendous insight as to how their people believe they should be measured. Another innovation is a section of the scorecard that Bupa opted to make compulsory, asking people about their career aspirations and willingness to relocate within the organisation. This is a fundamental part of Bupa’s talent management agenda.
Remesys’ high level of service and partnership with the business continues as the system is adjusted based upon ‘live’ experience. This has resulted in high acceptance of the solution. Other system enhancements include integration and single-sign-on with R.Review yielding an end-to-end workflow for management of Bupa’s pay for performance strategy.
Bupa has successfully rolled out a performance management solution that has been accepted by their people, meets the criteria and requirements of their current incentive programs and includes the flexibility to change their criteria and processes organically.
"From a strategic outcomes perspective, our pay for performance approach has been considerably strengthened through the incorporation of R. Performance, where we can ensure mutual agreement of all objectives, regular performance discussions and feedback, and robust career planning & development. With all elements of performance planning now transparent to the HR Operations team, we have the ability to specifically target managers in the business in need of coaching, and work with them on increasing the quality of performance plans."
Head of HR Operations
R.Performance case study
COMPANY:Bupa takes pride in delivering high quality health cover that is affordable and represents real value. Bupa look after the needs of more than three million people in Australia and New Zealand providing a range of healthcare services to help live a healthier life.
SOLUTION:R.Performance provides an intuitive system which facilitates the mutual agreement and review of KPI’s throughout a Performance Cycle including Individual Performance Goals, Behavioural Goals, Career Planning and Development Goals.
- Provides Bupa’s people and managers with significant input into the structure of their goals and how they should be measured whilst allowing administrators to ensure that organsational goals and targets are appropriately incorporated into the mix.
- Provides a permanent record of performance, behaviours, career and development plans.
- Draws hard links between the results of Performance Reviews and remuneration and bonus awards.
- Requires minimal training allowing all managers to get up to speed quickly.
- Provides administrators with ‘Shadow Access’ so they can provide help over the phone precisely when managers need it.
- Delivers reporting on the completion of each aspect of the annual Performance Cycle facilitating reporting at all levels, calibration by senior management and feeding metrics into various other decision making criteria.