Year of Incorporation:
1990, listed in 2009
Precision Engineering & Marine
Background of company
Heatec Jietong Pte Ltd (Heatec) has two core businesses in its portfolio – Heat Exchanger and Piping. Originally a marine industry focused company, Heatec has now expanded into the Oil and Gas Industry. Heatec prides itself on being a family oriented and managed business. Listed in 2009, the company aims to be more corporate, but seeks to maintain its family like environment at the same time.
Before Heatec implemented the HR Capability Toolkit, their evaluation and disbursement of pay increments were done on the anniversary from the employment date of the employee. This was a laborious task for the HR department, as they would have to track in advance on a monthly basis to determine the list of employees due for a pay increment for that month. In addition, this process was also extremely informal with HR providing an execution role based on the manager’s request.
Prior to the usage of the Toolkit, there were also no appraisal system and subsequent benchmarking in place. As a result, there were numerous complaints in the past about biasness in performance appraisal exercises and corresponding pay increments for management employees. For their general workers based offsite, there were no proper records and benchmarking in place for them as well. As a result, it was only possible to have the supervisors provide a simple grading system for each employee, and subsequently HR would provide an increment based on the performance grade accorded.
Putting in place a structured performance management system
After their introduction to the HR Capability Toolkit, Heatec was able to customize and adopt the templates and guidelines to suit its company’s needs. For its management employees, the company has adopted an E-Appraisal system whereby HR’s role is to drive each year’s appraisal exercise by being the administrator for its system. A form on the system will be created with the names of the employee and appraiser. This form will then be sent to the Appraiser to rate the employee under his charge. When the form has been completed by both the employee and the Appraiser, the form would automatically be sent back to HR, with an email response being sent to the employee for acknowledgement.
For their general workers, Heatec made use of the grading system recommended within the HR Capability Toolkit. Employees are now first graded by their supervisor, who will subsequently pass on the file to the Operations Manager for review before submission to HR. The company has also invested in a HR management system whereby personal details of the general workers such as demerit points for absenteeism without reason will be flagged up. The additional round of checks done by HR allowed them to verify the scores provided by their supervisors, which helped to ensure that the appraisal was conducted without bias.
Positive impact from the implementation
The implementation of new systems, together with the templates and guidelines provided in the HR Capability Toolkit have enabled Heatec to perform a more objective performance appraisal exercise across different levels and departments within the company. This has resulted in a reduction of conflicts and misunderstandings between managers and employees, and has led to an overall improvement in employee morale and productivity. While turnover rates have not changed significantly, employees have displayed an increase in motivation. Employees are willing to stay for a longer period with the company, as they now feel that a proper Performance Management system is in place.