The purpose is to build a culture that has employees and customers 'at the core of everything IAG do'
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Insurance giant IAG New Zealand has announced they will stop incentivising employees based on sales target driven performance.
Chief executive Craig Olsen said the announcement is the culmination of an on-going process of review and change over recent years.
“IAG New Zealand has had a long-standing commitment to a balanced scorecard with regard to rewarding staff which has seen an incremental reduction over the past few years in the value of sales incentives in our performance framework,” said Olsen.
“We have now decided to completely remove sales target incentives from our people’s objectives effective 1 July 2018 so we can support customer requirements from a service and needs basis.”
Olsen added that the company’s purpose is to “make our world a safer place”.
He said that at the heart of this is making sure IAG offers the right cover and protection that meets the needs of the customers.
To demonstrate IAG are truly purpose-led and to create world-leading customer experiences, IAG are continually assessing their current business practices and future approach.
“We know that customer and community sentiment is evolving, people expect to receive a great experience,” he said.
“Removing sales targets will further enable IAG to build a culture that has our people and customers at the core of everything we do.
“Over the last three years we have continually reduced individual objectives around sales. In the current financial year, we introduced an objective to place less emphasis on the outcome and more emphasis on the customer experience. The latest move means will we have zero incentivised sales targets.”
HRD recently reported on IAG’s flexibility program which requires managers to ‘start with a yes’ if people request flexible working arrangements. This has contributed to a shift in conversation and attitudes towards flexibility.
“We encourage our leaders to talk openly about flexible working with the whole team,” said IAG’s general manager future workforce strategy, Cat Boyd.
He said this allows teams to work together to find a way to accommodate peoples’ flexible working needs, without compromising our customer service.