Lloyds Banking Group will base its variable pay to staff on customer feedback rather than product sales from 1 April 2013.
The incentive scheme was first piloted by 70 of the bank’s 1,800 UK branches, including Lloyds TSB and Halifax branches.
The other requirements of the scheme include:
- Employees must pass the organisation’s ‘risk gateway’, a measure that ensures staff generate the right outcome for customers. If the risk gateway is not passed, no variable payment is made.
- The quarterly payment is based on the employer’s net promoter score (NPS) from customers through interactions they have had with the group. For any payment to be made, customers must rate the bank as excellent.
- NPS accounts for 50% of the variable pay award.
- The remaining 50% of the variable pay award will eventually be paid annually and is based on employees’ balanced scorecards, which analyse how staff members approach their work.