KPI-Based Evaluation System at Hosteeva

Standard Operating Procedure (SOP) for KPI-Based Evaluation System at Hosteeva

1. Purpose: The purpose of this SOP is to establish a structured and objective KPI-based evaluation system for Hosteeva employees, ensuring fair performance assessment, timely feedback, and transparent bonus distribution.

2. Evaluation Period & Schedule

Employee evaluations are conducted every three months (trimester-based system) to enable continuous performance tracking and timely feedback. The schedule is as follows:

• First Evaluation Period: December – February | Bonus Payment: March
• Second Evaluation Period: March – May | Bonus Payment: June
• Third Evaluation Period: June – August | Bonus Payment: September
• Fourth Evaluation Period: September – November | Bonus Payment: December

3. KPI Structure & Evaluation Criteria

Each employee is evaluated based on three key performance indicators (KPIs):

1. Individual KPI – Directly influenced by the employee’s own performance and responsibilities (50% weight).
2. Team KPI – A metric that facilitates teamwork and is shared among team members (30% weight).
3. Company KPI – A performance measure reflecting the department's contribution to overall company goals (20% weight).

The selection of KPIs is designed to balance personal responsibility, team collaboration, and alignment with company objectives.

If an employee does not reach their individual KPI, it serves as a red flag to assess and understand the underlying reasons. After identifying and working on potential issues, if there is no progress in the next evaluation period, the company should reassess whether the employee is in the right position.

4. Bonus Eligibility & Entry Thresholds

• The company will define one or two primary performance thresholds to determine bonus eligibility. These could include:
  • Minimum revenue percentage.
  • Average occupancy rate across properties.
  • Average review score across properties.
• If these threshold criteria are not met, the bonus system will be adjusted accordingly.

5. Control Systems & Compliance

• Every department will operate under defined SOPs that outline the exact processes and procedures for each function.
• Employees are allowed up to three SOP violations per evaluation period before bonuses are affected.
• If the number of violations exceeds three, the employee's bonus will be nullified for that evaluation period.
• Written Reprimands: If an employee receives a formal written warning during the evaluation period, they will not be eligible for a bonus.

6. KPI Calculation & Evaluation Process

• All KPIs must be based on third-party sources to ensure data objectivity (e.g., review platforms, Hosteeva system, Zendesk, etc.).
• Data Collection & Processing:

1. On the last day of the evaluation period, responsible personnel extract performance data and submit it to HR.
2. HR processes the collected data within one working week, creating individual reports.
3. Employees receive their results and have one week for self-evaluation before discussing with their supervisors.
4. One-on-one feedback meetings are held between employees, supervisors, and HR during the third week.
5. Approved results lead to bonus payouts in the following month.

7. Learning & Development Bonus Modifier

• Employees have the opportunity to earn additional bonuses through learning and development activities.
• Qualifying activities include:
  • Reading and presenting insights from relevant books during team-building meetings.
  • Completing professional development courses.
  • Attending industry conferences and sharing key takeaways with the team.
  • Propose innovative process improvements that are successfully implemented.

8. Company Culture & Values Integration

• Evaluation includes peer reviews and supervisor feedback on communication quality within internal and external interactions.
• Strong collaboration, adherence to Hosteeva’s values, and engagement in the company culture will be taken into account.

9. Post-Evaluation Process & Goal Setting

1. After each trimester evaluation, managers submit performance data to HR.
2. HR prepares individualized reports and envelopes for each employee.
3. HR also creates a feedback form, which is completed jointly by the employee and supervisor.
4. One-on-one coaching and feedback meetings are conducted to discuss performance, set new targets, and address concerns.

This SOP ensures transparency, fairness, and continuous improvement within Hosteeva’s performance evaluation and bonus system.