Managing the risks to consumers

Good and poor practice:

Good practice

Action is taken when the quality of sales is found to be poor – bonus payments are reduced or, in serious cases, individuals removed from the incentive scheme immediately.

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Poor practice

Failure to apply sanctions despite problems occurring (quality standards not met).
Staff giving poor advice that needed corrective action are penalised by losing their quarterly bonus but still receive a (larger) monthly bonus.
A “quality gateway” intended to stop staff receiving bonuses if certain sales quality standards are not met is ineffective because staff can still qualify for a bonus if other categories being measured meet the required standards.
Doubling the monthly bonus of staff who meet a high standard of compliance as long as there is only one mistake: staff can therefore receive a double bonus even though they may have mis-sold a product.

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