Performance Management

The Performance Management process for OCU-represented employees was implemented in 2017 to promote employee growth and development. As with any process, the Company evaluated opportunities for improvement, drawing on input shared by employees and their managers. Pay for Performance went into effect in 2021 and continues today.

Employees and their managers establish Performance and Development Goals in the Talent Management System (TMS), including agreed measures and timing using SMART Objectives.  Mid-year and year-end discussions are documented in the TMS with managers assessing employee performance relative to established work plan objectives and measures using the standard Cummins definitions of Exceptional, Successful, and Unsatisfactory performance as outlined in the Performance Management Policy to identify High, Solid, and Low Performers:

High Performer

Base Wage Increase: 5%

Exceptional. Your manager’s assessment indicates that you predominantly exceed expectations in both: 1) demonstration of Cummins Values, an ability to work effectively with others and within the Cummins organization and culture; and 2) the essential documented and agreed work plan objectives, priorities and metrics. Your manager considered feedback from others regarding your results and the manner in which they were delivered.

Solid Performer

Base Wage Increase: 3%

Successful. Your manager’s assessment indicates that you met and at times may exceed expectations in both: 1) demonstration of Cummins Values, an ability to work effectively with others and within the Cummins organization and culture; and 2) the essential documented and agreed work plan objectives, priorities and metrics. Your manager considered feedback from others regarding your results and the manner in which they were delivered.

Low Performer

Base Wage Increase: 0%

Unsatisfactory. Your manager’s assessment indicates that you did not or only partially achieved expectations in one or both areas: 1) demonstration of Cummins Values, ability to work effectively with others or within the Cummins organization and culture; or 2) the essential documented and agreed work plan objectives, priorities and metrics. Your manager considered feedback from others regarding your results and the manner in which they were delivered.

All base wage rate increases/lump sum payments are processed to pay out on the first Monday in April.  All performance pay is calculated on the employee’s base wage rate as of December 31st of the performance year.  To be eligible for High Performer or Solid Performer base wage rate increases or lump sum payments for a given performance year, an employee must have a hire date on or before October 1st of that performance year.

If you have any questions, please reach out to your Human Resources representative.

See Cummins Our Story to learn more about Cummins Core Values!