Bank to employees: Pay it forward

FARGO, North Dakota (AP) -- A bank is giving its full-time employees $1,000 each and part-time employees $500 each. There's one condition -- use it for people in need.

State Bank & Trust Chief Operating Officer Michael Solberg said each full-time employee will receive $1,000 and each part-time employee will receive $500, as part of a $502,000 "Pay it Forward" initiative.

"We're going to really see some huge impact on our community," Solberg said.

Employees were told not to use the money for themselves, their families or families of other bank employees. The bank asked each employee to document the good deed with a video camera. The deadline is June 30.

The employees were told they may choose an individual cause, pool their money for a larger project or collaborate with donors outside the bank. The privately owned bank has more than 500 employees, he said.

The bank made the announcement over the weekend.

In previous years, the Fargo-based bank has taken 5 percent of the company earnings and divided it up at holiday time among employees

CNN
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Interesting - so, none of the funds can be used for your own family? There is something wrong with this. What if the employee could use it themselves.. tellers do not make a lot of money and probably could use the "(un)bonus" money to help pay utilities, rent ect. If the bank wants to give to charity... then do so... Don’t give money to employees with a criteria of don’t spend it on your own needs.

It appears from the article that this 'gift' was in lieu of a bonus this year...........very curious.

screw that, i need the money too

You just waking up X? We talked about this about four or five hours ago!

Yes, I just got up - I'm a little slow today.

I agree.

Seems the bank wants it's EMPLOYEES to give to charity, or other people they know who need help.

What's wrong with giving something to your people to give to others? Then the employee gets the tax deduction (if applicable)

If this is instead of their usual Christmas bonus, then this is not a very nice thing to do to their employees. Some of them probably have very real needs that those funds can help alleviate.

If this is in addition to their usual Christmas bonus - then that is a truly wonderful thing!

Are they simply being cheap while trying to appear altruistic OR are they truly being generous?

A terrific demonstration to its employees of the concept of seedtime and harvest. Many folks never have had the ability to sow this much in one lump into a real need and see the fruits of that gift. I think it's a brilliant idea.

It does appear to be a bank PR stunt. I know that giving is better than receiving, but not when it's basically your bonus and you are told to give it away.

A "gift" (if that is what this is) once given belongs to the recipient, to do with as he chooses.

I think as adults, the employees already understand the core of this concept.

Being in banking for several years, I know first hand many bank employees do not get paid well...you generally have to be a department manager or above in order not to worry too much where your family's next meal is coming from.

To give a part-time or low level full-time employee several hundred dollars to go and do good elsewhere, is a smack int he chest when they are tryign to figure how to make this month's rent payment, or how to pay for their childs basic needs.

I agree it is wonderful and brilliant, as long as you are not on the verge of having to be one of the recipients.

Yes, those single moms out there who struggle to provide food and medicine for their kids living on teller pay.... We've always tried to look out for our own, but some folks just won't share the trouble they're in financially.

I would find it hard to spend that money on someone else in need if it meant my child would go without her medicine or decent food to eat.

So, if the 'gift' to others was in place of a bonus directly to each employee, this is a good thing? Are you insane?

Presumably, the employees will have to pay income tax on this money, too. Will they then have to make up the difference to gift the entire amount to someone else?

That was going to be my point, hmdagal. And before people start talking tax deduction, remember that if you do not own your own home, chances are you don't itemize deductions because it's usually less than the standard deduction. This means that some employees could get stuck paying income tax on the "bonus."

I am guessing that that money is not being paid directly to the employees... more like, let the bank know what you are doing, and we will cut the checks for you to present, or to reimburse you.

As a result, the employee has no choice but to pay the money forward.

I think the bank did not think this through. It is for publicity (hence the photo ops!) and if truly in lieu of any bonus money for tellers and such is in poor taste.

Years ago I worked at a bank that upped its base salaries for tellers and other lower paid jobs when it was pointed out that many qualified for our low income CRA loan products. The bank had decided it was making a commitment to community development and at least had the decency to start at home once it was pointed out to them. It actually was a nice place to work.

If anyone working at this bank is reading this, you can donate your 'un'bonus to my charity....The Human Fund.

Thank you.

I wonder if participation is mandatory. I cannot really tell by reading the first post.

And what is all of this talk about bonuses?? Not all banks even pay a bonus...

If the news articles are correct:

"In previous years, the Fargo-based bank has taken 5 percent of the company earnings and divided it up at holiday time among employees."

I don't think it necessarily follows that they took away bonuses in order to do this. I think they're just showing their history of allowing bank employees to participate in the bank's profitability. There's nothing in the story that indicates they're not doing that this year - I'm not saying they are, just that we don't know from the story.

I don't understand why the bank just couldn't make a donation and leave it at that.

I read this quote in the Minneapolis Star tribune (sorry -- I don't know how to link!):

Employees will still get a holiday bonus this year in addition to the money for charity, and everyone got video cameras to document their good deed.

Apparently the employees must use the camera to document the good deed by a certain date, andall donations have to be approved by HR before completion. It sounds as if the bank has empowered the employees to help direct the charitable contribution that has meaning to the employees. (And not given them the money and then forced them to use it for charity).

That makes a lot more sense. They aren't hurting their staff in the process.

Still sounds a bit stupid. You have to document by a certain date your good deed via camera and then wait to have it approved by HR. Duh!
Makes me want to rush right out and do it.