Revolut's points-based employee tracking system, called Karma, encourages staff to follow risk and compliance rules. It grants or docks points based on behaviour, and is used to influence whether or not bonuses will be paid, the report suggests.
“Karma serves both as a feedback loop that rewards and corrects behaviours, as well as a comprehensive risk and compliance culture oversight engine,” Revolut’s annual report states.
But according to Daniel Snell, CEO of organisational performance consultancy, Arrival, strong leadership is key in driving and measuring performance; this can’t be replaced by technology.
Speaking to HR magazine, Snell said: “HR leaders must refocus on recognising outcomes that move the business forward, not just compliance or activity. Tech can support this, but it can’t replace leadership.
“Until we rebuild the ability to manage – to prioritise, decide and hold to account – we’ll see a continued rise in tracking tools, not as innovation but as compensation for a deeper management crisis. Recognise and reward those who deliver to strategy, and who demonstrate the right characteristics to drive it.”
Read more: Employees define 'high performance' differently to business leaders
Although Karma may have helped improve risk and compliance culture at Revolut, there are other ways to measure performance, added Mike Williams, chief HR officer at food retail company, KellyDeli.
He told HR magazine: “By tying behaviour so tightly to limited areas, I wonder what they are missing out on in terms of innovation and creativity from teams?
“Clear, structured OKRs (objectives and key results) and a focus on performance outcomes tend to give employees the freedom to work out how they will get there, which team members tell me is a rewarding way of being able to work because the freedom is rewarding. Regular talent reviews and powerful conversations with teams help keep the focus on outcomes, and managers laser-focused on team performance. It also allows people to use their own judgement for mitigating circumstances.”
Revolut’s report also outlined further initiatives the business had used to strengthen risk and compliance culture. These included launching a risk and compliance certification programme, enhancing mandatory training and developing the 'Risk Culture Index', which is said to measure the strength of the company’s risk culture against underlying drivers.
Read more: Thoughtful compliance can build trust in remote teams
When designing kinds of reward systems, it is crucial to understand what sits beneath them, such as the culture and employee experience, stated Beth Stallwood, director of culture consultancy Transforment.
She told HR magazine: “When we reward one type of behaviour directly, and others don’t have a cost attached, other behaviours for great work can be ignored, or even become toxic.
“As HR professionals, we must remember that every action, programme, or policy will create a response, and we need to look broader and deeper at the potential outcomes, both positive and negative, created by the ripples of our interventions.”
Stallwood added that employee feedback is crucial in understanding if systems like Revolut’s actually work.
She said: “We must remember that the numbers don’t tell the full story. If the voices of our people aren’t included, we’re missing out on key feedback to inform our decisions."
