Reward & recognition: performance 2007/08
We have:
Continued to implement initiatives that link reward with individual performance
We reward our employees based on their contribution to the success of the business. In 2007/08, we implemented plans that differentiate reward based on individual contribution, through both our Global Annual Bonus Plan (Short Term Incentive) and our Global Long Term Incentive Plan.
In 2007/08, the short-term incentives of all senior management were linked to individual performance and this will be rolled out to all managers in 2008/09. In addition, from 2008 all employees will be eligible to receive shares through our Global Long Term Incentive plan depending upon an assessment of their business criticality, future performance and potential.
Granted 320 shares to all eligible employees through our AllShares Plan
In 2007/08, all employees across the Group were awarded 320 shares under the AllShares Plan on condition they stay at Vodafone for a further two years. This is the fourth year that Vodafone has made an AllShares award.
Continued to monitor employee views of the rewards we offer
We measure our employees’ views of their reward, recognition and benefits through our Global People Survey (see communication and involvement). Responses to questions relating to reward and recognition improved overall in the 2007 People Survey.
The number of employees agreeing that they usually receive praise or recognition when they do a good job increased by 7%. Around half (51%) of employees across the Group also understand that the better their performance, the better their reward will be.
Of those surveyed in 2007, 46% said they are rewarded fairly for the work that they do, compared with 44% in the 2006 Pulse Survey and 42% in the 2005 People Survey. We are continuing to work in this area, focusing on programmes to link reward with individual performance.
We will:
- Continue to extend pay for performance within the business to provide differentiated rewards for our key people
- Continue to integrate reward packages across the Group, under the principles of performance, flexibility, competitiveness and fairness.
