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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?

Post covid:

  • Giant reward: Much more frequent bonuses to the employees.

  • Smart working: Working from home became the new 'normal.'

  • Recognition program.

  • 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.

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