Human Resources Monthly Report Sample

Rewarding sales performance or service values?  February 13, 2013 – 12:16 pm
13 examples of human resources

With yesterday’s results of the strategic review at Barclays being well received by the media and investors, new CEO Anthony Jenkins already seems to be having a powerful influence on the culture and behaviour in the organisation. “The rules have changed” he told staff, adding there was the need for a new approach “that squarely links performance (and pay) to our values” of respect, integrity and customer service. And in refusing to accept any bonus because of the bank’s past problems, he is certainly putting his own money where his mouth is.

Bonuses have had a strong influence on behaviour in financial services firms in the past – many would say too strong. As the European Commission debates the imposition of a 100 per cent cap on variable pay, and Barclays and their competitors continue with reforms de-gearing the pay of executives and traders, attention has now shifted to the other group of staff with high incentive opportunities – direct sales people and advisers.

The Financial Services Authority recently published its finalised guidelines on sales rewards, revealingly titled Risks to Customers from Financial Incentives. High-risk pay practices such as excessive and uncapped commission plans and over-target payment ‘kickers’ are listed, while individual firms who have been subject to FSA enforcement actions are ‘named and shamed’ in the report.

Source: HR blogs - People Management

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