This comes as part of the bank's adherence to the Sedgwick Report recommendations
By October, the incentive arrangements for NAB’s frontline bankers will fall in line with the reforms recommended by the Retail Banking Remuneration Review (Sedgwick Report).
Under the new scheme, bankers who work in NAB’s branches and consumer call centres will be “rewarded based on a balanced scorecard of customer advocacy, compliance with risk, process/quality improvements, and financial performance”.
“We believe that how our people demonstrate NAB’s values as they do their job is just as important as the job itself – that’s why we’re moving all frontline bankers to the Group STI (Short Term Incentive) Plan,” NAB executive general manager of performance and reward Lynda Dean said in a statement.
“This change is one of many things NAB is doing to make banking better for our customers.”
NAB has already made a number of remuneration structure changes over the last 18 months:
- NAB departs from performance-based, fixed pay increases for customer service and support staff. NAB now gives a standard pay rise of 3% per year
- Product sales target will no longer determine pay increases for certain employees, including branch managers and business bankers
- On October 2017, the remuneration structure for more than 700 retail branch managers, assistant branch managers, and sales team leaders in consumer call centres moved from product-based incentives to the Group STI Plan
NAB has also moved away from the product-based reward to the balanced scorecard approach to measure and reward the ‘how, not just the ‘what’, the bank said.
NAB bankers will also take on a new role. As NAB Home Lending Specialists, they will be trained to offer customers expert home lending advice.
According to Dean, they are investing in people to “have the capabilities, skills, and training to provide a simpler, faster and better customer experience”.
