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#446265 - 10/24/05 08:39 PM Incentive Program

We are going to implement an incentive program for tellers, CSRs, Branch Managers & I really need some help. I have reviewed prior postings but none of the postings identify the incentive plan, ie. quanity of what, how much paid, team or individual, etc.

Does anyone have an incentive plan they would be willing to share?

I use to work for "big" banks that had wonderful incentive plans but I forget how much they paid for what & times have changed so much now. Those plans only looked at cross-sells & referrals. I would really like ours to include other things such as internet training courses completed, errors, compliance deficiencies, etc. Is it possible to include it all into one incentive program?

How do you come up with their goals?

I know I have lots of questions but I truly appreciate your thoughts & help.


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Human Resources
#446266 - 10/24/05 09:00 PM Re: Incentive Program
HRH Dawnie Offline
Power Poster
HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
That's an awful lot to pack into an incentive program

I was on a committee that looked at them for our bank and my final theory on this is....hire a consultant who can help with some industry standards (I'm not one so I'm not advertising) There are so many regional questions to be answered (ie on the amounts, etc) and competitive concerns.

One thing I highly suggest, from experience at banks with different programs, is that you do not link the basic job skills into the incentive program. Instead, link incentive to performance of those basic skills (ie you do not receive incentive if your review is not X level).

The other thing that I think is HIGHLY important, is that incentive be somewhat team driven. While you can have discression in rewarding a top preformer, if you don't link it to team performance you can end up with some serious problems. For instance, I used to lock my office at night because the incentive program at a bank I used to work at rewarded anyone who closed a loan. This meant that if docs were faxed to the branch, people would RUSH to the fax machine and call the client to come in and close, then they'd receive the incentive. It didn't matter that the relationship was with one banker, and that the work had all been done by that banker, it was purely based on who initialed the docs at closing. It meant we had a low trust, slimey envirnment to work in. The clients could see what was happening. It was just ugly!!!
Dawn Coursey VP/CRA Queen

CRA Rating is in...Oh who cares...I'm home with the baby.

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#446267 - 10/24/05 09:11 PM Re: Incentive Program
Raiderette Offline
Diamond Poster
Joined: Nov 2004
Posts: 1,316
New Mexico
Part of our incentives are based on balancing, for the tellers anyway. Perfect balancing for the quarter would recieve a greater amount then someone that had a few mistakes. Regularly balancing mistakes are not given an incentive.
Are you ready for some football?

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#446268 - 10/25/05 09:11 AM Re: Incentive Program

I agree with HRH Dawnie. I've seen some poorly designed incentive plans wreak havoc, and even make customers feel uncomfortable. Get help from someone who has seen what works and what doesn't.

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#446269 - 10/25/05 10:07 PM Re: Incentive Program

And may I suggest, as you design your program, talking to people in areas outside of branch banking, such as ops and security. Sometimes, an incentive program will unknowingly reinforce the wrong behavior.

For example, do you still get a bonus for opening a new account if you do not follow proper procedures and the bank takes a loss because the initial deposit turned out to be a counterfeit check on which you placed no hold? Or even if the bank doesn't directly take a loss because someone "behind the scenes" reviews new accounts and places the hold for you, isn't there a loss of morale when the unseen operations person gets no "incentive" for doing the extra work that earned the branch person a bonus?

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#446270 - 10/26/05 12:40 AM Re: Incentive Program

I will log off for this because I'd rather not name my bank.

I don't endorse a 'perfect balance' incentive - it is an invitation to force balance. Any auditor will tell you that a teller that NEVER posts a shortage raises suspicion. It is expected that tellers balance and an incentive for that is not necessary.

Incentives for what is expected will not showcase your best employees. Adding incentive for continuing education is admirable but it should be for training that will benefit your employee. BSA training is required and you shouldn't give incentive for that.

Gotta be like the big guys if you want a profit: Set goals that are challenging but attainable and add incentive for cross selling and referring. Tellers can refer for additional accounts, loans, investments, etc. Bankers have to increase product penetration.

Back office employees could receive incentive when bankers meet their goals - offer something special for those non-banker employees - time off, maid service, cash, etc.

I wouldn't set incentive based on what anon above says, although I understand where the comments are coming from.

The bottom like, original poster, is first to decide what you want out of the incentive program. Do you want increased sales or improved morale? Or both?

Register and I'll be happy to pm you with a general overview of our bank's incentive program.

Good luck!

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#446271 - 10/26/05 06:57 PM Re: Incentive Program

Are audit & compliance personnel exempt from receiving incentives? Our incentive program we are contemplating involves giving employees incentives for referrals for mortgage loans. Can all employees of the bank participate?

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#446272 - 10/27/05 12:05 AM Re: Incentive Program
8675309 Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,115
Where the wind comes sweeping ...
Our incentive program is open to all employees. While ops folks don't get a lot of referrals, why would you not want to encourage them to open accounts for their family and friends and cross-sell when appropriate?

We had a proof operator recognize an opportunity to sell a lockbox which has been very lucrative. A call center employee solicited a convenience store she visits every morning - that turned in to getting the entire chain! A loan processor's husband works at a local college. She chatted up the Dean and got him to let us make a proposal on the entire organization's accounts. I could go on...

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#446273 - 10/27/05 03:06 PM Re: Incentive Program

BVS Performance has a CRM program that has an incentive calculator to help you determine what amount should be paid for different products/services. It also allows you to incent for performance, training, etc.

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