How incentives in financial services changed post covid
Businesses struggle to motivate their employees and retain their best talent. This task gets more challenging daily, especially in a post-pandemic era, where resignations are rising. In addition, businesses need to have great control and governance, but their job gets a little trickier regarding regulatory scrutiny on incentives and commissions.
How did the organization's incentives/commissions change during the pandemic?
C-level executives from financial services companies answered that:
The pandemic made it harder to implement the organization's plans, but it didn't change the actual plans.
There might not have been a change in the plans, but the organisations saw a significantly reduced outcome.
Customers had less money to spend, leading to the organization's reduced outcomes.
During the pandemic, executives' salaries were frozen, leading to discomfort and uncertainty.
At the same time, employees faced more pressure since they had to work on their colleagues' projects who left the business during Covid-19 or were ill, too.
Organisations focused on non-financial performance and ESG targets, which led to more qualitative results.
Organisations also saw an incredible increase in the data around non-financial goals (sustainability, etc.)
What changes to incentives/commissions did the organization retain post-pandemic? What drove keeping those changes?
Giant reward: Much more frequent bonuses to the employees.
Smart working: Working from home became the new 'normal.'
Issues of transparency: Not just because of the pandemic, but in general with what is happening worldwide – wars, economic crises, climate change, etc.
The need to be always prepared: Have a scenario planning for each case.
What additional changes to incentives/commissions have emerged? What are the drivers?
Rewarding referral executives of the business.
Managers' tools: As an organization, offer tools so your employees can work remotely.
Transparency to be more frequent.
Inhouse feedback from employees: feedback from employees nowadays can be more beneficial than your customers.
Recreate KPIs based on the organization's needs.
Thinking broadly about sales performance management, from sales planning & goal setting to commission/incentive administration, reporting and analytics, where are the organizations focused in the next 12 months?
Recreate the Human Resources system: A new system where consistent reports of the analytics.
Controlling Sales Teams: Organisations focus on covering their losses through increased sales.
Centralised system: Review and handle different organization's plans.
New business means new investments.
Introduce an ESG target.
Equality in human rights.