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Incentives You Can Bank On
September 05, 2008
Financial institutions use awards as sales inducements and community involvement as a stimulus to growth
By Peter Hildebrandt
During tough economic times, banks and financial institutions often bear the brunt of criticism as people scramble to hold on to their homes, assets, jobs and sanity. But many banks may be able to keep relationships strong with employees, customers and their communities through incentives designed to benefit everyone.
Thrivent Financial for Lutherans awards its top 25 producers with the Pinnacle Leadership Retreat. The Minneapolis, Minn.-based company has some 2,800 financial representatives in its field force, so the 25 best form a rather elite group of attendees—less than one percent of all reps.
The event is always held in the United States at an exclusive location. The Inn at Spanish Bay, Pebble Beach, the Sanctuary at Kiawah Island and the Four Seasons, Scottsdale at Troon North are a few of the five-star resorts where the retreat has been held since the program was started 1 years ago.
The New York event, designed and produced by San Diego-based event planners TBA Global, kicked off with a catered dinner on the Lexington, a private yacht, followed by a boat ride around the southern tip of Manhattan, to the Statue of Liberty and then up and down the East River. In attendance were two bagpipe players from the New York Police Department's Emerald Society.
"As attendees walked onto the boat, the bagpipe players mingled in the crowd," says Dan Young, director of event planning and field recognition for Thrivent. "With this being a sunset cruise, Manhattan was just lighting up for the evening, and the cloudless sky as the boat circled the Statue of Liberty made this a perfect moment for us all."
The next evening featured a pre-theater dinner with a surprise visit by two principal cast members (Christian Hoff and Daniel Reichard) from the Broadway show Jersey Boys, who'd been hired to entertain. Attendees got autographed CDs from the show, along with the Playbill. After the show, the top 10 producers from the group and their spouses were given a backstage tour.
The group also witnessed the opening of the NASDAQ at MarketSite in Incentives Times Square, where they were invited guests, followed by a tour. Later that morning business sessions included ideas from top financial planners about their practices, such as customer service and how to build a business.
Esther Berger, a top financial planner from Beverly Hills, discussed her practice. Friday evening, a black-tie dinner on Rockefeller Center's rooftop garden featured a string quartet. At the next morning's business meeting Tulane University finance professor Peter Ricchiuti spoke. Young describes Ricchiuti as being a cross between Alan Greenspan and Robin Williams.
Spouses on one morning visited Greenwich Village and toured with Marisa Tomei's mother, Addie Tomei. They were invited into her home for refreshments and traveled up and down the street being introduced to various shop owners.
Despite the fact that many attendees were from other regions of the country, there still was a substantial local contingent, and even they were amazed. The Jersey Boys event rated a five out of five on evaluation forms and the Village tour a 4.9 out of five—incredible results, considering a substantial number of New York locals were participants. Even the meetings rated a four.
As for New York City as a destination, Young says the food is top-notch, the theater, the sights and the shopping are always outstanding. The city experience is unlike anything else in the world—especially for financial planners—as this is, after all, the financial headquarters of the world.
A Bank That Gives Back
One of Cleveland, Ohio-based KeyBank's incentives for employees is also a benefit to the community. "Neighbors Make the Difference" day is an annual program started in 1990, that involves all KeyBank branches across the country. Employees leave their offices at noon and spend the afternoon helping in the community. For example, 500 employees from New York's capital district volunteered at 57 different locations this year. These volunteers go out and help different nonprofit agencies with everything from weeding gardens to painting walls, filing, sorting bottles or even washing dogs.
"This started as a grassroots effort among employees, and has now taken hold across the entire company," says Ellen Sax, vice president, community relations. "It's great for our employees and great for the community. In the Capital region alone, we calculate that those volunteer hours equate to approximately 50 workweeks."
Across the country more than 7,000 employees are involved in the program. (KeyBank has 985 branches in 13 states.) "Neighbors Make the Difference" has been running for 17 years, and people love it, according to Sax.
"They are giving back to their community, which builds teamwork. When employees get out of the office, it gives them a lift, plus they get to see a project actually come to a conclusion. It is a win-win situation for both the employees and the communities in which they live and work."
KeyBank has another incentive for employees. If an employee serves on the boards of federally registered nonprofit organizations, KeyBank makes a $500 leadership gift. In addition, if an employee makes a gift to a nonprofit organization, KeyBank will match it. "Part of our culture at KeyBank is to support and give back to the community," adds Sax. "We look to our employees to serve on boards and participate in nonprofits in whatever capacity they would like. If you are committed to an organization, your service to them is acknowledged by KeyBank through a gift to that organization."
Health, Fitness and Star Tellers
At BB&T Corporation—a bank that covers much of the southern and mid-Atlantic United States—employees can take advantage of a strong wellness and fitness program. If employees improve their wellness statistics, they get incentives directly applied to their health benefits in the form of reductions in premiums.
BB&T reviews its incentive plans on a regular basis, asking for input on what employees and customers want to see, or things that might best motivate them. A bank task force studies ways to enhance the incentive system to make sure BB&T is in line with the competition.
America's First Federal Credit Union, headquartered in Birmingham, Ala., has corporate goals for each branch, to encourage loan and deposit growth. If the branch makes both its loan goals and its deposit goals, financial rewards are involved for both the branch manager and employees.
Under the Star Teller program, if they have a balanced cash drawer of customer deposits and withdrawals with no errors, within 15 minutes of the end of the day, tellers qualify for a financial incentive, as do branch managers and other employees.
"From time to time, twice yearly, we do a loan promotion," says Mike Thomas, 22-year veteran with America's First, and assistant vice president for branch operations. "This is in line with the type of promotion
that we're doing."
"Those involved are able to receive a certain rate; also, if a branch meets a certain amount of loans for that given time frame, participants receive a four-day, three-night vacation at a destination they can select from 18 different spots around the U.S. Everyone in the branch who has helped reach the goal is eligible for this promotion."
America's First Federal Credit Union has sponsored a Habitat for Humanity house in its community for each of the last two years. Employees help out with this home's construction. The homes were built on sites selected in the Birmingham area. There are plans to do another home in spring 2009. America's First gives a donation for the building supplies. This credit union also sponsors a corporate charity golf tournament each year.
Strong Community Ties
The Oregon-based financial institution OSU Federal Credit Union attends various area trade shows where it uses promotional items to get its name out in the community and state. The merchandise can be anything from pens to pizza cutters to unique items appropriate to the particular event. But that's not the only way the credit union makes a mark in the community.
According to Shannon Lynn, director of marketing, OSU Federal provides sponsorship both with cash and employee volunteers for community action. "The very nature of how credit unions are structured means community involvement is very high, as we're a not-for-pofit financial institution. We return profits back to members in the form of additional services, investment in the community and technology, in addition to lower fees as well as better interest rates."
OSU provides financial education seminars presented at high schools, county agencies and employer groups throughout five Oregon counties.
"Because we're focused on serving our members and not stockholders, our perspective is much different," adds Lynn. "We're providing products and services in the best interest of our members and are not necessarily looking for the highest return and the most profitable products and services. This also enables us to be more mindful of the community we’re in and then work to meet those needs."
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