Incentives !

No doubt a plan put in place by the ANZ bank to reward it's top performers with a luxury trip to Disneyland will  bring a spray of protest from those members of the public who disagree with incentives for merit.  Those will be the same people who disagree that employees who use their brains to deliver a better service to customers are worth more money than drones who contribute little.  

In particular, the ANZ bank will stir the ire of many because it has just announced a profit of $ 1.53 billion for the past three months trading, and because of that some people think that profits should be redirected into lowering interest rates.

This tends to miss the point of why banks like ANZ exist.   They are a public institution which is owned by ordinary people by way of buying shares.  Profits are distributed by paying dividends to the holders of those shares, but trading in shares is also a risky business.    Share prices rise and fall at the whim of the market - and that dividend depends on the level of prosperity achieved.   It is the objective of the bank to make as much profit as possible to satisfy it's shareholders.

Within the banking structure, reward is needed to focus attention on refining the services offered and creating new areas of trading to enhance profits.   It is inevitable that some employees will have outstanding aptitude to these tasks, and they will become prime targets for poaching by rival trading organizations.   It is essential if the organization is to continue to expand that talented staff be retained and wise management ensures that rewards are commensurate with the value of those employees.

That brings salaries into the equation.  The best and brightest deserve more money that those who contribute less to the company, but it is also wise to look beyond mere money and remember that exemplary service also infringes on family time and quality of life.   The wise ensure that this is catered for in the reward package.

ANZ bank has selected it's best and brightest - and their spouses - to fly with Qantas for a four night trip to the United States - with all expenses paid.   This will cost $ 11,000 per couple and will include a day at Disneyland.    The group will be drawn from fourteen countries - and thirty-five of them will be Australian.

While this rewards ANZ people for their outstanding contribution to excellent trading results, it also delivers a reward to the bank.   It creates a bond to discourage key employees from offering their services on the general market and leaving the bank.   It recognises that a happy family environment plays a big part in worker satisfaction.

The grumbles from the public are the usual pangs of jealousy from workers who contribute little to the advancement of their employer.  That old adage that " you need to give - to receive " holds true.  Bringing interest rates into the question is simply a furphy.   The events that govern interest rates are deep and complex, and governed by a host of external factors.

Love them - or hate them !     There is a lot to be thankful for when we see evidence that one of our key financial pillars has the good sense to guard it's trove of most valued employees - with adequate incentives.
The economy may look grim - but at least some of our national institutions are in good hands !