Thursday, October 24, 2013

Compensation vs.Change

Many clients I consult with have programs in place already and are using their programs more as a compensation tool.  If your NPS is good, everyone get bonuses and if the score is subpar - well the pool will have to wait until next year and bring on the jelly of the month club (Christmas Vacation Reference).

It does however put a small glitch into the experience improvement process.  If your customer experience program really is about improving the customer experience there may be some downward spirals before the scores level out. 

What does that mean?  Outside of management not receiving as much bonus as they did last year, it makes the next year a tough ecosystem.  How do you handle the pressure from above to get the scores up in time for bonuses and actually effect change within the organization?  Please don't say contest (I beg) - that is saved for another post.  

Our goals should be compensation because of change!

Hopefully, you have a dreamy executive team that understands the importance of the experience and that real change will mean that the bonuses actually mean something (like real bonuses should).  This education process mostly results in the NPS metric taken out of bonus programs until they are stable.  In a perfect world, NPS is tied to bonuses with the launch of the program.  

With the ultimate goal of perfect NPS (lol), there is some key take aways for the messaging of a compensation program.  If you want to see an engaged culture, reward on perfect.  

There is something to say about how that message is relayed that affects the type of change you will see.  as an example:

If you tell an agent that their NPS last week was 65 and that they will receive a bonus if they increase their NPS by 5%.  Then that is what you will get.  An agent NPS of 68 (ish).  If you tell that same agent that the goal is 100% and the closer they are to that, the bigger their bonus will be, good things happen!  For one, you have an agent always striving to do better (hopefully) and secondly, you can quickly weed out those that just don't give a hoot.  Also, you have an executive team who doesn't take such a significant hit.  A much easier environment to live in if you ask me!

Have you seen this challenge within your clients and/or company?  

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