Target Based Pay – What is it?

Target-based pay is now the most common pay system in the finance sector and call centres. Many workers now have financial rewards dangled in front of them in return for a commitment to reach or exceed targets set by their company. Employers argue that target pay leads to increased motivation.

Unions like Finsec have pointed out that target pay is often used to mask under-staffing, by encouraging people to work beyond their normal hours or at an unrealistic pace. Many target pay systems start to impinge upon people’s work-life balance and generate stress. Most major finance companies have pay systems that compel their staff to continuously sell more and more products to customers. They set sales targets for their staff to meet if they are to receive the performance component of their pay. They then regularly revise those targets upwards so that more and more selling is required each year.

Take Action

Inform yourself. Contact your union councillor or organiser – click on your employer link above and to your left for contact details.
Get Active. Join the campaign to stop target-based pay . Email union@finsec.org.nz
Join the union. The more organised we are the more change we can make. Call 0800 FINSEC
Lead the way. We need more delegates, health and safety reps and activists on every site. Call 0800 FINSEC to find out what is involved.
Find out more. Check out the stories and research on our target-based pay webpage