GM rewards top performers with 150% bonus and fires employees

We all probably know someone who doesn’t work hard, who just gets by, and who does the minimum to keep their job. Likewise, we also know someone who goes above and beyond and is a high performer. GM wanted a new way to reward its best employees to encourage more people to go the extra mile.

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GM will reward the top 5% of its employees with a 150% bonus to retain and attract talent, according to a recent internal memo released by the company. The change will also force poorly performing employees to improve or leave.

Read: Ford boss doesn’t think electric cars are the only way forward

The new employee rating system will rate employees on a five-point scale, from “greatly exceeds expectations” to “falls short of expectations,” and the bonus each employee can receive will vary based on their ranking. Employees will be evaluated based on the new rankings during their year-end performance reviews.

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“To ensure GM has the talent it needs to achieve its ambitious goals, we need a more intentional process that makes performance expectations clear and holds employees accountable,” the memo read.

In the statement published ReutersA GM spokesman said the automaker wants to build a productive workforce.

They said: “GM is proud to have a culture that encourages and rewards high performance, which will help us attract and retain top talent in a competitive industry environment. This includes everything from ensuring employees know what is expected of them, providing feedback so they can develop, and rewarding them for their performance.”

Under the previous system, employees were ranked into three ranking categories: “Partially Meets Expectations,” “Meets Expectations,” and “Exceeds Expectations.”

Ford has already implemented similar changes, which CEO Jim Farley said were part of an ongoing overhaul of the company’s business.

“We learned that having the right talent wasn’t enough,” Farley said. “Over the last two years, we had to get the right performance management system in place. It was a fundamental shift in how we run the company.”

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