Performance Management in Ørsted

Introduction to the Ørsted Performance Management

Performance Management Annual Wheel


Performance Management Annual Wheel

Managing performance is more important than ever. As a manager you play a crucial role in the development of the business and our employees. We need to support the engagement, motivation, performance and development of our employees. In Ørsted, we have four annual performance processes to supplement your day-to-day management:

Performance and Development Dialogue (PDD)


January - March

Feedback on results & behavior from previous year. Alignment of expectations for coming year

Salary Review

Salary review

May - June

Recognition and rewarding of performance

People Matter

People Matter

October - November

Employee satisfaction survey

People Review

People Review

December - February

Performance and Potential review

Performance and Development Dialogue (PDD)


You and your direct reports must have the same clear expectations for what the individual goals are, how they contribute to the overall strategy and what is required to reach them. The annual Performance & Development Dialogue (PDD) acts as a structured dialogue between you and your direct reports with a focus on the employee's performance, well-being and development. 

 You as a manager will invite your direct reports to the PDD dialogue, which usually takes place from January to the end of March. 

PDD focus area

The PDD supplements your day-to-day dialogue with your manager and helps to ensure thatyou receive structured feedback and that you can play a role in shaping your working life. Here,you will agree on priorities for the work, decide on a development plan and talk about wellbeingand job satisfaction

Look Back

- Follow-up on performance throughout the past year

- Give nuanced feedback on performance and development potential (based on People Review)

Look Forward

- Follow-up on performance throughout the past year

- Give nuanced feedback on performance and development potential (based on People Review)


- Follow-up on performance throughout the past year

- Give nuanced feedback on performance and development potential (based on People Review)

Salary Review


Fair, competitive and market-adjusted are key words for  remuneration in Ørsted. 

In order to attract and retain competent employees  and to ensure a responsible focus on expenses, Ørsted offers a salary that  reflects the general market level. 

We ensure this, by taking into consideration  salaries in all the countries where we have a presence.

Annual Salary Review

Annual salary review

Each year, the employees’ base salaries are assessed by their immediate manager.

P&D Compensation & Benefits decides on an overall salary adjustment percentage based on business conditions as well as general salary developments in the market. The salary adjustment percentage may differ across the various business units and countries.

Your Role as a Manager

Your Role as a Manager

- Ensure right salary level when recruiting – refer to external benchmarks, but also compare to internal salaries of current employees with similar job and profile

- Use the outcome of the People Review when setting and reviewing the salaries of current employees

- Be sure to differentiate the salary based on performance and competencies

- Look at the salary level – not only at the adjustment percentage

- Promotions should be based on competencies and the level of the position

- Prepare yourself for the salary review meeting with the employee – to be able to explain the salary level and the general market conditions

Your Actions

Your Actions

- Follow salary adjustment guidelines in your business unit.

- The salaries in a department as a whole should be centered on the market median level. 

- By differentiating salaries, you ensure that each employee receives a salary that reflects his/her individual position, personal competences and performance, and which is thus competitive.

- In the salary review, you can only adjust the base salary. You cannot reward employees with one-off bonuses, better terms of employment or other types of employee benefits.

People Matter


Ørsted conducts the People Matter survey once a year. In the People Matter  survey, we ask all employees about their perception of Ørsted as a workplace, their daily  work, their manager and many other areas, which affect their daily life as an employee in Ørsted. The survey gives you as manager, as well as Ørsted, valuable insight into employees satisfaction and motivation and helps ensure  that we continue to promote a good working environment

Results sample

People Review


People Review provides a calibrated overview of the employees’ performance anddevelopment potential across teams, and it is therefore both a key career planning toolat Ørsted and the basis for specific and nuanced development feedbackin connection with the Performance & Development Dialogue (PDD).

Performance Matrix

Results - Make an overall assessment of what your employee has achieved during the year

Behaviour - Make an overall assessment of how your employee has achieved the results

Potential Matrix

Potential is defined as the employee's readiness to take on more responsibility, handling more complex tasks or even to move to a position at a higher level if it is in accordance with the employee’s development plan.

Multi rater approach

- Nuanced inputs from stakeholders are relevant in your preparation

- Examples are very important in order to make the assessment as fair as possible

- Consider who you ask – it should be a stakeholder at a higher level than the employee, preferably in a leading position, not a colleague in the team

- Feedback template is available at the new Vital 

It´s Quiz Time!

After the PDD, your employee....

  • should be aware of what they are responsible for, how they can contribute and perform as well as how they can develop.
  • should only upload the PDD document on the ESS
  • should ask also others for a feedback

Match the Performance Management process with the exact quarter

  • PDD
  • People Matter
  • Salary Review
  • People Review

A constructive feedback...

  • applies to situations where the employee has done a good job. Highlight specifically how and why it was a good job
  • highlights how the employee can do better. Focus on specific observable facts and use the AID model on this slide

The Mid-Year Performance and Development Dialogue is part of the Performance Management annual wheel?

  • Yes!
  • No.

Regarding salaries...

  • Ørsted pays a competitive but not leading salary
  • Ørsted pays below the market benchmarks
  • Ørsted pays salaries depending on the experience and skills of the employees

The salary review budget will be decided by:

  • Specific BUs Departments
  • Countries
  • P&D Compensation and Benefits

The People Matter Survey is about...

  • a wide range of areas affecting working life
  • a limited range of areas affecting well being and living the Orsted way

People Review consists of...

  • an assessment led by HRBP to calibrate the performance of Ørsted employees
  • an assessment of results and behavior followed by a 1:1 meeting
  • an assessment and calibration of performance and potential, followed by an individual nuanced and concrete feedback to the individual

Performance matrix assessment categories are:

  • Below Expected, As Expected, Above Expected
  • Low, Good, High

Potential is...

  • employee´s ability in the role and versatility to step into another one
  • employee's readiness to take on more responsibility, handling more complex tasks or even to move to a position at a higher level