Australia and New Zealand Banking Group (ANZ) has decided to scrap practice of offering sales-based bonuses to its frontline retail sales staff in New Zealand starting October this year.
The move follows claims from a section of ANZ staff that they had pressure to sell products such as loans to client who were not interested in them.
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As a result, the bank, which hands over approximately 25% of bonuses based on sales, has decided to ditch this practice saying that the customers should be offered the right product, not because it offers incentives to staff members.
However, the bank will still give incentives to its retail ANZ staff based on good customer service offered and as well as on product knowledge.
ANZ managing director of retail and business Antonia Watson said: “We trust our staff to do the right thing by our customers and we know they consider customers’ genuine needs when they talk with them. Removing sales targets altogether will give our customers total confidence that we’re focused on doing the right thing by them.
“The environment is clearly changing and the feedback we’re getting and what we’re seeing in Australia suggests this is the right approach, regardless of how direct or indirect our sales targets were or how minimal.
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By GlobalData“We have a culture in ANZ New Zealand where staff are focussed on the wellbeing of our customers. If our customers are satisfied and get ahead in their lives because of the products we’ve given them then it’s in our long-term interests too.”
