Financial service providers rely on incentives to motivate, increase productivity, and reward their employees. According to Auriemma Consulting Group research, 83% of financial service providers use incentives for agents and 67% for team leaders. However, the future of incentives may be in jeopardy.
The Financial Conduct Authority (FCA) released a report in October 2017 detailing its concerns on how incentives may influence the wrong behaviours, including the potential link between incentives and high-pressure sales or collections activities. The report also called for adequate and effective controls for mitigating risk posed by incentives, such as ensuring that incentive pay-outs do not outstrip base salaries. In March 2018, another FCA report highlighted the evolving role of incentives as part of a broader priority to improve the culture at financial services firms. As part of its recommendations, the FCA encouraged firms to add robust controls, regularly review programmes and incorporate more behavioural sciences when designing incentive programmes of the future.
Amid these recommendations, it is paramount that financial services firms design incentive programmes that both encourage good conduct and acknowledge the interest of the consumers. It is paramount to define the correct key performance indicators, pay-out timeframes, cadence (monthly vs. quarterly vs. annual) and firmly grasp how much the incentive should be tied to quantitative or qualitative measures.
Sponsor message - content continues below this message
2022 '17th annual' Global Contact Center World Awards NOW OPEN
Enter your Center, Strategy, Technology Innovation, Teams and Individuals into the ONLY TRULY GLOBAL awards program - regarded by many as being like the Olympics for the Contact Center World! Join the best from over 80 nations and compete for the most prestigious awards out there!
Content continues ….
"Due to the lack of wage growth in the UK and the ever-rising pressure on household income, financial services professionals will continue to see monetary incentives as a crucial component of recognition," said Louis Stevens, director of Auriemma Consulting Group's UK Roundtable practice.
At a March meeting of collections and recovery executives hosted by Auriemma, financial services firms shared best practices related to implementing incentive programmes in this evolving environment. Key findings included:
Incentive programmes should be designed to motivate lower-performing employees in addition to rewarding top performers. Programmes should be aligned with team- and enterprise-level objectives linked to business performance, professional development and the building of a stronger culture.
The average pay-out annualised to an agent typically equates to 9.3% of their salary and 8.3% for team leaders. This means that most firms are aligned with the FCA's desire to not have incentives outweigh base salaries.
While the FCA's March paper encouraged financial services firms to consider incentives beyond monetary rewards, cash is still king for financial services employees, outranking other factors such as increased responsibility, achievement and recognition. All of the firms surveyed by Auriemma were using cash incentives.
When designing new incentive structures, firms should solicit a broad set of opinions from around the business and perform user testing before launching a new programme.
Taking a fresh approach to incentive programmes is increasingly crucial given the changing demographics of contact centre agents: According to Auriemma research, 25% of the agent population is between the ages of 18-25 – up from 13.6% in 2015. The future of incentive programmes will be a key theme at the upcoming Collections and Recoveries Roundtable meeting, scheduled for 21st and 22nd June in London.
Posted by Veronica Silva Cusi, news correspondent
About Auriemma Consulting Group:
For more than 30 years, Auriemma's mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City.
Published: Monday, May 7, 2018
eGain CallTrack™ is a dynamic call tracking and case management solution that helps companies provide quick, high-quality, and cost-efficient resolution of customer issues across traditional and emerging interaction channels. It is one of the many innovative customer interaction products in eGain Solve™ suite, the unified customer engagement and knowledge management software suite, which helps businesses transform their traditional call centers into omnichannel customer engagement hubs. eGain CallTrack will enable you to track, manage and resolve cases and maintain service level agreements (SLA), across channels.
Happitu is your customer support team’s personal coach. It guides your team through every interaction with custom workflows, responsive scripting, and dynamic help topics.
Documentation in Happitu is automated, detailed, and consistent. Go beyond handle times and service levels with the rich insights of Happitu – from granular interaction data to aggregate data and trends – you get the complete CX journey!
We intentionally built the Happitu Workflow Designer with your customer support team in mind. Using our intuitive tools that provide quick and safe iteration, you eliminate the need to involve IT or Development. Yes, you will no longer have to dread submitting a change request to Devin from IT!
Try it free for 45 days!
Knowmax is an omnichannel knowledge management platform. Our mission is to transform contact centers into resolution centers and drive customer self service.
The platform is an industry-agnostic enterprise-grade knowledge platform with components helping in easy findability of actionable information at the right time across the desired touchpoint.
Nuxiba's Help Desk Software is ideal for delivering top-level contact help desk services. It not only tailors to your existing technology resources but also allows you to set staff priorities that forward clients to the most knowledgeable agents.
Give personalized assistance, and analyze performance with our real-time monitoring, recording, and reports. Integrate Salesforce or VTiger CRM systems, be TCPA compliant, protect your cardholder's data during calls, and more!
Request a quote or demo today and start the journey to increase your first-contact resolution percentages in less than three months!
OneDesk's software combines Helpdesk & Project Management into one application. No need to purchase, integrate and switch between applications. Your team can support your customers and work on projects in one place. Aimed at SMBs as well as departments at large enterprises, OneDesk is frequently used by project managers, customer service, IT, professional services and more. This easy-to-use, feature-rich, and highly configurable software can manage both ticket & task workflows.
|6.)||Teckinfo Solutions Pvt. Ltd.|
ActivDesk Help Desk Software
ActivDesk Help Desk Software is an intelligent ticketing software for multi- channel customer interaction & engagement. It streamlines the entire ticket management process. With its SLA & escalation management, it enables your help desk to deliver enriching customer experience.