What performance incentives does your bank offer branch personnel?

THOMAS K. FISHER Senior vice president Comerica Bank Detroit

IN SOUTHEAST MICHIGAN, we use three interrelated incentive plans to reward our branch employees. These three plans recognize the different roles the branch staff play in the sales process.

Our nonplatform staff are responsible for identifying the financial needs of their customers and making referrals to our platform staff to close the sale. To reinforce this role, nonplatform staff receive scratch- off cards. Every card contains "winning numbers" and employees receive immediate payment when they win.

A second incentive plan uses a point system to reward our platform staff for needs-based selling and profitability. This point system is neutral within product groupings. Greater points are awarded for sales in the most profitable groupings.

The third incentive plan is designed to reinforce the role of the branch manager as a sales manger. This plan is similar to the platform staff plan. However incentives are based on the branch achieving stretch- point goals rather than individual goals. Branch managers also receive incentives for achieving goals on an annual basis in key categories. ROBERT ERNST Senior vice president Fifth Third Bancorp Cincinnati

WE REALLY BELIEVE that cross-selling does in fact occur in the retail banking center system (branches). That's why we've been an advocate of continued expansion as opposed to consolidation. In addition, we believe in the philosophy of teaching all of our (customer service representatives) and platform people cross-selling opportunities . . . to the point of having a carrot in front of them. The menu of products and services continues to grow and by pushing it down to the retail level in the banking center system we like to incent our folks through a number of different opportunities. Namely, credit card, all types of consumer loans projects and products, special DDA incentives. We currently just completed what we call our Jeanie Power, which is electronic bill payment. It was an extremely successful campaign, with an additional 11,000 users of the electronic bill payment systems.

Last but not least, and this is part of our ongoing culture at Fifth Third, and that is every representative at Fifth Third, regardless, of position, is in fact a salesman. And we sponsor what's affectionately known as Team Fifth Third. (Through cross-bank referrals) people have all types of opportunities to earn remuneration in the form of dollars as well as incentives like vacation trips. It has been extremely successful. RON LANKFORD President Old National Bancorp Evansville, Ind.

WE'VE HAD A CROSS-SELL PROGRAM at Old National Bank in Evansville - which was the beginning of Old National Bancorp - for as long as 10 years. That's a cross-sell incentive program at the customer service level. We pay anywhere from $5 to $15 per new account, depending on what kind of account we are soliciting. A customer service rep can average an additional $50 to $150 a month in income based on good cross-sell performance. We pay for ATM cards, credit cards, etc.

In addition, all of our lending people are on an incentive program. For the most part, those incentives fall into the area of trips and, for want of a better word, hardware. We give away stereos, VCRs, trips to close-in resort areas. We do bus trips for as many as the top 10% of the producers.

Then we have an overall incentive plan for each (affiliate) bank. Last year, the low that we paid was 1.5% of the person's salary all the way up to 4%. That's based on the total bank and its performance. CHARLES JOHN "BUD" KOCH Chief executive Charter One Financial Inc. Cleveland

WE PUT IN A FORMALIZED sales incentive program about nine months ago which is kind of an individual/team concept. The branches are competing against other groups of branches and also against goals. How well the individual does - and how well the team does - determines the cash payout, which we do quarterly. They are given incentives for various products - things like checking account sales, direct deposit sales, and home equity loans - which are changed from time to time.

It's going very well. We had done informal stuff over the years, but this is a very formalized program. As part and parcel of that, we did a lot of training. And we implemented a sales management program at the same time, where the branch managers are on a very structured reporting system as far as the training programs they are doing with their branch personnel.

Those things together are working quite well. We are noticing a significant increase in sales that we're getting out of the branches.

This year we plan on increasing the amount of the at-risk pot. So the percentage of salary that the branch personnel will be able to get through the incentive awards will increase. And we basically have been reducing the flat merit awards somewhat. The pot will grow this year, so over time more and more of the compensation will be at risk through the various incentive programs. DAVID L. KERSTEIN Executive vice president Old Kent Financial Corp. Grand Rapids, Mich.

WE OFFER INCENTIVES to our tellers for referrals. We have incentives for our platform staff for products sold. They get a specific compensation for each product sold based on its profitability to the bank. Our branch managers are incented (based on) achievement of branch goals which include productivity and sales measures. KATHLEEN T. SHEA Senior executive vice president BayBank Systems Inc. Boston

BAYBANKS RECOGNIZES the tremendous impact that our branch staff has on our position as the No. 1 bank for consumers in Massachusetts. To the vast majority of our customers, branch personnel are synonymous with BayBanks, so it is natural for us to reinforce and reward expectional individual and team performance.

All of our customer contact staff can earn additional compensation for outstanding sales and service results.

In addition to receiving monetary rewards, our staff participates in an annual recognition program, with top prizes ranging from local weekend getaways to fabulous vacation trips. Last year, our grand prize winners won a trip to Hawaii. This year, the winners will go to Paris.

The combination of dollars and expense-paid vacations is important as the former helps to pay the bills while the latter provides bragging rights, as well as wonderful memories, for their significant contribution to BayBanks' success.

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