Performance management sees T-Mobile workforce cut by 20%

Performance management sees T-Mobile workforce cut by     20%

T-Mobile's workforce has been reduced by 20% over the last year as a result of  'performance management', the operator's UK HR director has claimed.

T-Mobile has reduced its head count from 6,382 to 5,142 over the last year. HR director Ian Pitcher said that 391 of those were lost through 'termination', while the other 849 -13% of its total workforce - left 'when the heat was turned up'.

Pitcher said that there had been a culture of 'soft' targets before the introduction of 'performance management', which measures employees' effectiveness.

As a result of tougher performance management and those leaving of their own accord, T-Mobile has saved £25m on salaries.

The company introduced the process last year after a profit warning was issued by parent company Deutsche Telecom.

The launch of performance management sparked concern among employees and unions took action.

Over the course of six months, 2,000 people went through the process, with 775 people still going through it.

In August last year, Mobile exclusively revealed that trade union Prospect, then known as Connect, wrote an open letter to HR director Mark Martin calling for clarification on the policy of performance management and reassurance about job cuts.

In T-Mobile's response to the union, it said: 'Although I absolutely believe that good performance management should lead to individuals improving to the levels required, it is inevitable that not all of our employees will either be able, or willing to make the necessary improvements.'

One T-Mobile retail employee said: 'T-Mobile used to bash out random amounts of targets, but now they have lowered it to make it much fairer. Its not to target weak sales people, as there is the career development plan. Everyone has targets to hit and they have at least a four month stretch to improve their performance.'
Written by Mobile Today
Mobile Today

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