The traditional annual appraisal process of the employees at the tobacco factory of Continental Tobacco Corp., one of the largest employers in Sátoraljaújhely, has been completed. Following the performance appraisals, the company distributed a total of around HUF 140 million (more than EUR 360 000) bonuses to its employees. There was also an annual pay rise, resulting in an average increase of between 10 and 20 percent in the salaries of Continental employees.
With more than 500 employees, Continental Tobacco Corp. has been using a performance management system at its factory in Sátoraljaújhely since 2008. The system includes company, departmental and individual targets, and is evaluated on the basis of objective indicators. Employees are also rewarded on the basis of their competencies. The appraisals are usually in February, following the summary of the previous year, and the payments are in March.
Following this year’s performance review, the total amount of bonuses awarded reached HUF 140 million (approx. EUR 360 000) gross. On average, employees received 110-120% of their monthly salary, with some employees receiving up to 200%. This amount was on top of the one month’s Christmas bonus paid to all employees in December last year.
At the same time, Continental Tobacco Corp. also implemented wage increases in line with its annual practice, the primary driving forces of which were inflation and the increase in the minimum wage and the guaranteed minimum wage. The details of the wage increase were worked out in consultation with the Factory Council and the employees’ union, resulting in a minimum increase of 10 and a maximum increase of 20 percent in the basic wage of the employees.
According to Csaba Füzi, CEO of Continental Tobacco Corp., the performance management system aims to be a dynamic support for the professional development of colleagues, while at the same time promoting the achievement of corporate goals. He added that, in his view, it effectively fulfills all these objectives and also contributes significantly to the development of employees’ organisational career paths, as well as to the correction and development of their competencies.