Insights on Incentives has as its sole purpose the facilitation of thought and discussion on the subject of incentive compensation for banks and credit unions.  Once a month NSS will be sending out an e-mail with one insight on the area of incentive compensation.  The insights will come from our research, discussion with customers and finally, those of you who decide to offer an insight on this important sales management issue.

May 2008

Pinpointing Performance

To pinpoint where you are at sea it takes three data points. Similarly, it takes multiple views to pinpoint an employee’s performance. One data point I used during my tenure as an IBM manager was ranking position. We ranked everyone in our departments from top to bottom. All people in all job classes were ranked together based on their overall value to the enterprise.

Ask your branch managers to try this with all employees in their branch. Then list their base compensation and incentives earned next to each individual. Do you see anything way out of line? If yes, then ask why and develop a plan to fix it. After all you don’t want to lose anyone at the top of the list because they believe they are not being treated fairly based on their contribution and corresponding compensation. Keeping your best makes this worth the effort.

Insights on Incentives is brought to you by NSS Corp.