POL: Sales Incentive Scheme Q4 08/09 and Q1 09/10

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No: 366
Ref: 101a
Date: 24 April 2009

TO: ALL BRANCHES WITH POSTAL MEMBERS

Dear Colleagues
POL: Sales Incentive Scheme Quarter 4 2008/09 and Quarter 1 2009/10
Quarter 4 2008/09 Payment

I am able to report that for Q4 2008/09, the total payable with regards to the Sales Incentive Scheme was £650,000, which represents an average bonus payment of £132 per member. Bonus payments will be made with May salaries.

The economic climate during 2008/09 has contributed to targets for the full year not being met. However, a total bonus pot of £3.7m will have been paid to members for the period. This equates to an average of £775 per member, which compares very favourably with the previous year. In fact, the actual increase in bonus payments is 46%. This is extremely encouraging especially in light of the economic situation and demonstrates the hard work and commitment undertaken by our members in terms of selling.

Quarter 1 - 2009/10 - Interim Arrangements

Further to LTB 66/09, dated 30th January, which reported that POL wished to negotiate a revised Sales Incentive Scheme; I would like to advise Branches that we have now reached an agreement for interim arrangements with POL. Effectively, for the first quarter of 2009, the existing incentive scheme will remain in place. To this end, assuming sales targets are met, POL has committed to paying out an estimated £900,000 in bonus payments for Quarter 1 (April - June).
The following Joint Statement confirms these arrangements.

24 April 2009

Sales Incentive Scheme - Q1 2009/10 - Joint Statement

We wish to thank you for your continued hard work over the last year. A total of £3.7m in bonuses will have been paid to Crown teams in 2008/09. This is £1m more than the previous year on a like for like basis and equates to an average payment of £775 per colleague compared to £530 last year, a significant increase of 46%.

2008/09 has seen unprecedented events in the economy. Interest rates continued to fall to their lowest ever levels, resulting in a challenging savings market, with the effect that, as the year progressed, people were reluctant to take out extra credit.

Partly, as a consequence of this, we, unfortunately, did not achieve the Focus product sales target and ended the year at 85% of target. Clearly the economic downturn had an impact, especially on discretionary products such as Travel Money and Travel Insurance. Mails was also impacted, especially at Christmas with people less inclined to use our Express Mails products, opting instead for the cheaper, standard alternatives. Overall Financial Services and Telephony ended the year behind plan with Mails and Government services finishing ahead.

Quarter 4 bonus payments will be £650k in total, giving an average of £132 per person. The payments will be made in May salaries.
Looking forward, we have agreed, whilst a replacement bonus scheme is being developed, to extend the existing scheme for Q1 only. A new scheme will commence in Q2.

Assuming sales targets are met, the good news is that approximately £900k of bonus payments will be payable for Q1 2009/10. The Focus products and the bonus paid for each sale are outlined below.


Product
Rate per
Product

POFS - Mortgages
£15.00

Broadband Service
£4.00

Life Assurance
£12.00

Homephone Combined Service
£4.00

POFS - IAS New Accounts
£10.00

POFS - ISA Sale
£2.00

POFS - Car Insurance
£10.00

Travel Insurance Single
£2.00

POFS - Home Insurance
£10.00

Passports
£0.50

NS&I INV Acc Initial deposit
£7.00

Personal Auto Withdrawal
£0.01

Structured Products
£7.00

Parcelforce 24 & 48
£0.01

POFS - Credit Card
£7.00

Mobile E-topups
0.100%

Travel Insurance Multi
£6.00

TMG: Travel Money
0.025%

Homephone Live Accounts
£4.00

Sales of Financial Services are vitally important to the long term sustainability of Crown Offices. You are, therefore, encouraged to make every effort to increase sales; this will help to grow the business and result in better bonus payments for all. As part of our drive to increase sales, we are now recruiting the remaining FSS roles. Please consider this opportunity as a career step and speak to your Branch Manager or Area Performance Manager if you wish to apply.
Finally, once again, thank you for your hard work.


Andy Furey Richard Barker
Assistant Secretary General Manager
Communication Workers Union Crown Network

FSS Recruitment

POL is currently recruiting a further 200 Financial Service Specialists. Branches are urged to encourage members to apply for this role, which carries an enhanced pensionable pay of £1000, coupled with the opportunity to earn commission for Financial Services products sold. In the absence of sufficient internal applicants, POL has indicated that it will have to rely on external candidates for these positions.


New Sales Incentive Scheme

We are currently holding discussions with POL in order to reach an agreement on a revised Sales Incentive Scheme for the remaining three quarters of the financial year. Meeting dates have been confirmed for the near future and we will report further developments with regards to new arrangements in due course.
Branches are encouraged to ensure that this LTB is brought to the attention of our Crown Office Members. Any enquiries should be addressed to Claire Bowers at cbowers@cwu.org


Yours sincerely

Andy Furey
Assistant Secretary