BNZ Update
2 October 2007
KEY POINTS:
- Banks often argue that target pay allows people be paid 'what they are really worth'. However they can and do increase targets without agreement, we believe, because it saves them money. Once target pay is introduced it is easy to make the criteria for an increment or a bonus increasingly less achievable.
- Finsec's goal this year is to work with the bank to review its whole target system, with a view to making significant changes to improve the day-to-day experience of staff at work.
ACTION:
Delegates: Talk to staff on your worksite about what changes you would make to targets if this Finsec claim is won. To win fair targets we will need their support to grow our membership before negotiations next month.
A 400% bonus
The recently released proposed new sales targets at BNZ have one aspect that has not attracted much discussion so far, and it is probably because it is so normal that we take it for granted. So let's take a second look. Why do the bonus payments go so high? - up to 400%.
Let's take a look at sales targets for BAs for example. A Banking Advisor at 100% of her or his salary earns $47,743 before getting any incentive payments.
But it is possible for her or him to earn a further $28,000 in incentive payments if she or he sells 400% of their target.
$28,000 on top of your salary sounds fairly good. Good that is until you realise that the bank has just got the equivalent of four people's sales done by paying just over 1.5 salaries; a saving to the bank of $115,000 if you follow our logic.
A Banking Advisor who 'merely' does the sales work of two people saves the bank nearly $36,000.
Working for free
We believe the BNZ's strategy to increase profits at the moment is working because workers do not realise how much free work we are doing for the bank. Currently many of us do a second, third or fourth person's sales job at a fraction of the cost that it could cost the bank to hire new staff.
The same job at Westpac earns more
A Banking Advisor at BNZ can reach 100% of his or her salary very quickly compared to workers in similar positions at Westpac. But when an equivalent worker at Westpac (e.g. a Home Loans Specialist ) does reach 100% he or she will be earning $58,000 before bonuses. A BNZ BA would need to average 190% of her or his sales target just to match that.
What does all this mean?
Well, we all know targets keep increasing to drive greater sales and profit for the bank. When you add increasing targets to decreasing staff levels over recent years you create extra workload.
Targets are placing significant pressure on staff to sell more and more products in an increasingly competitive and tight market.
From the Union Council
