BT Consumer - Bonus Plan in Sales
6 April 2017
BT has been in discussion with the CWU over changes to bonus arrangements in Sales and Retention. The changes will mean that all bonus range triggers will be aligned and simplified across all products.
From March, decelerator payments will start at 75% or product target and standard On Target Bonus (OTB) will start at 100% of target. Accelerator payments will start at 120% of their target, while for those in camp A; the super accelerator will be set at 130% of target. In addition to this, BT is changing some of the bonus multipliers. Some will reduce slightly (across all camps), whilst some others will increase (in camps B – D).
While the changes do simplify the bonus trigger arrangements, the detail does contain some significant issues of concern to the CWU as detailed below.
At the moment, OTB can be earned for achieving less than 100% of the product target. This will no longer be possible and could result in reductions in monthly earnings.
BT has confirmed that some advisors will need to sell “slightly more” to maintain their current bonus but has emphasised that the majority will be unaffected.
BT has undertaken to monitor the impact and share the relevant data at national level.
The CWU has expressed concern that by aligning On Target Performance with On Target Bonus e.g. from 88.5% to 100% this could reduce the proportion of advisors that can reach OTB, and achievability is a key principal of bonus design especially for Workforce 20/20 grades.
In general, BT does not believe that the move will significantly impact the proportion of advisors who reach OTB. BT has agreed to monitor this over the coming weeks and provide regular updates to the CWU.
Where the OTB level has been set very low levels e.g. 32.5% of product target, BT has also agreed that it would phase the increase of the trigger point during March to reduce the impact.
The CWU expressed concern that the change would increase the likely number of performance management cases if Advisors do not achieve the new higher triggers for OTB bonus.
BT has responded by confirming that performance management should be based on behaviours and not metrics, and has emphasised that while the bonus trigger points have changed, the expected on target performance requirements have not been altered.
BT has also agreed to monitor the number of cases and share details with the CWU. The National Team will continue to monitor this issue in the coming months.