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Amwelladmin (talk | contribs) (Created page with "{{A|work|}}A time-honoured incentive plan for agents, by agents. Financial services firms have long struggled with the distinction between ownership and service. A firm’s owner takes her reward from the investment of capital — cash that the firm uses to acquire kit, rent premises, pay suppliers and hire staff, all in the collective enterprise of selling things — goods or services — for a return exceeding that capital outlay. As long as the firm does that, it...") Tags: Mobile edit Mobile web edit Advanced mobile edit |
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In any case the civilising forces of the union movement have long since intervened to ensure that all servants are paid a basic determined wage for their time at work. | In any case the civilising forces of the union movement have long since intervened to ensure that all servants are paid a basic determined wage for their time at work. | ||
Nonetheless a static wage for time spent is no great incentive for a servant to strive for excellence. The history of financial services employment practice has been the effort to engineer suitable alignments given the confines of employment regulation. | |||
You can always offer staff the carrot of annual pay rises, but this has a ratchet effect: a servant whose work quality declines over time cannot really have her pay reduced — employment regulation makes this procedurally difficult. So payrises tend to be anaemic, hedged about by concern for the firm’s cost base should the business environment deteriorate. | |||
On the other hand, should the business environment improve good staff disaffected by unimpressive payrises tend to be biddable by other firms prepared to pay more. | |||
The alternative is “discretionary” compensation. For salespeople, | |||