Remuneration and Rewards at Nike: A Performance Appraisal Analysis

This report examines Nike's remuneration and rewards strategies, focusing on their performance appraisal system and compensation plans. It highlights how Nike tailors its approach to different roles and locations, offering diverse benefits such as medical, dental, vision plans, and various employee support programs. The report details the company's shift towards performance-based bonuses and stock options, emphasizing their commitment to employee well-being and professional development. It also mentions the different benefits offered at various locations, such as the Beaverton World Headquarters, the Netherlands, and Shanghai. The analysis includes a review of how Nike strives to meet the diverse needs of its employees through a comprehensive total rewards program, aiming to support their teammates to their full potential both inside and outside of work.

Remuneration and Rewards
A performance appraisal is a periodic review and formal process in which the work that is
done between a boss and collaborator is assessed (ResearchMatic, 2012). It is a way to
maintain touch that colleagues have met the objectives and goals of their work, and that
they have fulfilled their commitments that are in line with their work and their guidelines.
The performance management system at Nike ensure that the objectives in their business
plans are being met and that each employee contributes towards them (ResearchMatic,
2012). It also creates constant communication between employees and managers, allowing
needs to be met and ensuring clear instructions.
Since Nike has offices all over the world with many different roles, there is no set methods
to perform employee appraisals. Their sales manager would not be reviewed based on how
many designs are drawn up each year, while an apparel designer would not be assessed by
the amount of sales (Winterfield, 2015). To retain Nike’s top performers, Nike needs to
compensate them for their performance. These could mean that they are reaching quotas
or performing well against their objectives (Winterfield, 2015).
After “a deep analysis of all roles at all levels globally” (Kish, 2018), roughly 10% of Nike’s
global workforce received a raise as part of changing the compensation system. The new
changes indicate that monetary bonuses will be based on company performance, whereas
before it also factored in company, department and individual performance (Kish, 2018).
This change was implemented in the beginning of 2019. Employees who are eligible for
stock will also get the compensation as stock options, restricted stock units of 50% of each
(Kish, 2018). Ilana Finley, Nike’s senior director of North America communications, said that
through the company’s total rewards program, Nike will "strive to meet the diverse needs of
our employees, deliver differentiated, competitive pay and benefits, and support a culture
in which employees feel included and empowered (Gurchiek, 2018)."
In combination with monetary remuneration based on performance, Nike also rewards their
employees in other ways, based on which location they work in. In the Beaverton World
Headquarters, employees have medical, dental and vision plans, resources and support to
care for children with learning, social, or behavioural challenges, surrogacy and adoption
assistance, and a commuter expense reimbursement account, just to name a few (Locations,
Nike 2020). On top of that, their campus includes an Olympic-sized swimming pool, three
full-size soccer fields, miles of running trails, and much more. In the Netherlands, being a
more family friendly environment, employees are treated to a bike purchase program, non-
birth parent and adoption leave and transportation programs (Locations, Nike 2020). They
have personal trainers and food trucks, as well as kids summer camp. Meanwhile, in
Shanghai, there is housing allowance, business travel insurance, and on-site massages
(Locations, Nike 2020).
From health to mental wellbeing, Nike continually invests in their employees to “help them
achieve greatness – both at and outside of work.” (Nike, 2020). Their goal is to enable and
support their teammates to their full potential.

References:
Benefits. (2020). Retrieved 1 October 2020, from https://jobs.nike.com/benefits
Gurchiek, K. (2018). Nike Shoots for Pay Equity with Changes to Reward Program.
Retrieved 1 October 2020, from
https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/pages/nike-
shoots-for-pay-equity-with-changes-to-reward-program.aspx
Kish, M. (2018). Nike overhauls compensation plan, 10 percent of workers get raises.
Retrieved 1 October 2020, from
https://www.bizjournals.com/portland/news/2018/07/23/nike-overhauls-compensation-
plan-10-percent-of.html
Locations. (2020). Retrieved 1 October 2020, from https://jobs.nike.com/locations
( 2012 , 8) .Performance Management System Researchomatic .Retrieved 8 , 2012, from
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