Incentive Compensation Programs for the Operations Department

You should consider the following for inclusion in your Incentive Compensation Program for the Operations Department:
Productivity measures such as:

• Proof items and errors per hour
• Statements prepared per hour
• Teller/New Accounts transactions per hour
• Accuracy and timeliness of reports
• Cross Selling
• Fee Collections/Waivers
• Meeting clearing deadlines and cutoff schedules
• Meeting targets on earning assets/total assets ratio
• Controlling non earning assets, i.e. cash in bank, due from banks
• Departmental turnover ratios
• Meeting specified budget levels

Don't be adverse to utilizing some subjective measures that are important to the job i.e. friendliness, calling customer by name, etc.

Allow support personnel to receive a portion of their incentive for "overall organizational achievement".

First published on BankersOnline.com 3/19/01