Doug Pearson
May 15, 2013
Meeting Moderator
Agenda
 Polling to set the stage
 Briefing from Belinda Cavazos, Teche Federal
 Briefing from Josh Seago, Beacon and Company
 Some ideas from NSS
 Interactive Discussion
Belinda Cavazos
 Teche Federal Bank
 Retail Division Manager – branches, retail lenders,
training, and administration
 40 years of experience starting out as a teller
 Rolled out their incentive program in 2002 when she
started out with Teche
SALES INCENTIVE PROGRAM
HISTORY
 Organized in 1934 as a Savings and Loan Company
 State Charter June 2011
 Located in South Central Louisiana
 Currently 20 Locations – 19 Full Service Branches
 $850 million
 330 Employees
 200 Retail Employees
 Management, Branch Staff and Lenders
Retail Sales Incentive Program
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Implemented in 2002
Created and Developed Internally
Production & Profit Driven
Retail Positions Participating:
 Retail Management, Administration and Marketing
 Branch Lenders and Loan Officer Assistants
 Branch Managers
 Customer Service Representatives
 Future Participants
 Tellers (Closed Referral Incentive Payment 6/13)
PROFITABILITY
Accounting Department Provides Data:
 AVERAGE BALANCE OF PRODUCT PORTFOLIO
 LIFE EXPECTANCY OF PRODUCT
 RATE DIFFERENTIAL
MONETARY COMPENSATION TARGETS
Human Resources Provides Data:
 Salary Surveys (Asset Size and Position)
Market Survey
State Survey
National Survey
Compare our current salary to that of same position’s
salary and incentives/bonus
PRODUCTION ANALYSIS
FORECAST
 Loans:
 Use prior 5 months of loan production as a predictor of
production for the next 6 months production
 Deposits:
 Use prior year’s same 6 months interval of deposit
production as a predictor of the next 6 months of
production
PLAN RESULTS
Monetary Payouts
 Threshold
 Tiers
 Pay Per Point at each Tier
PLAN RESULTS
Monetary Payouts
Customer Service RepsIncentive Target-21%
 Average - $500/mo.
 High - $1,600/mo.
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PLAN RESULTS
Monetary Payouts
Branch ManagersIncentive Target-45%
 Average - $1675/mo.
 High - $4,000/mo.
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PLAN RESULTS
Monetary Payouts
LendersIncentive Target – 74%
 Average of $2,750/mo.
 High $6,800/mo. (74%)
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PLAN RESULTS
Monetary Payouts
Retail Management,
Retail Administration &
Marketing
Various incentive targets
Calculation is based on the total production relating to
areas of responsibility and/or support
(Ex. Regional Loan Manager’s earn roll up of loan production points for
lenders in their region only.)
ADMINISTRATION
 Salary Surveys-Annually
 Plan Reviews and Adjustments-Semi-annually
 14 Different Plans reviewed and adjusted
 Payouts are Monthly
Josh Seago
 Josh Seago – Account Executive, Beacon and Company
 Vice President, Retail Banking at Naperville Bank &
Trust
 Transitioned the organization to needs based selling
 Vice President, Branch Manager of PNC Bank
 Facilitated training for the Chicago market
“Incentive programs as a
building block of an overall
sales culture”
“Incentive programs as a
coaching tool”
“Incentive programs as a sales
motivator”
Additional ideas from NSS
Incentive Plan Design Tools
 Modifiers
 Gates
 CAPs
 Thresholds
 Accelerators
 SPIFFs
 Non-cash rewards
 Scorecards
Checklist For Plan Effectiveness
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Is it fair?
Is it understandable?
Does earnings reflect effort?
Have targeted earnings level been reached often?
Are payments frequent enough?
Are you confident that doing the right job produces more compensation?
How may people are making quota?
Has the plan changed to reflect external issues?
Is turnover up?
Are we attracting the right people?
Are desired work behavior changes occurring?
Is your commission statement accurate?
Is your commission statement understandable?
Are there too many measurements to focus on?
Questions and Answers
 Chat
 Raise your hand icon
Contact Information
 www.nsscorp.com
 dpearson@nsscorp.com
 603-296-2909
 www.beaconandcompany
 jseago@beaconandcompany
 630-299-3660