Platform by Wells Fargo members of the Committee for Better Banks:

A roadmap to move forward following the elimination of sales goals and quotas

October 2016

At Wells Fargo sales goals and quotas were part of an overall compensation strategy based on cross-selling. Workers were pushed to sell as many financial products as possible to each customer and were provided sales bonuses for meeting constantly changing and increasing goals and quotas. When workers could not meet the goals, they were coached, disciplined and terminated. Fear of discipline and termination became a significant sales motivator, and bank employees suffered from high levels of stress, anxiety and physical ailments related to high-pressure workplace practices.

In September, 2016 following the $185 million fines, the Consumer Financial Protection Bureau (CFPB) consent order, and the subsequent Senate Banking Committee and House Financial Services Committee hearings with Wells Fargo CEO John Stumpf, the bank announced the elimination of sales goals and a process of listening sessions and town hall calls to get feedback from employees about how best to offer Wells Fargo products that meet the needs of the customers.

Wells Fargo workers who are members of the Committee for Better Banks have worked collectively to define a position regarding the elimination of sales goals and quotas and the system that will be developed in its place. This five-point platform provides guidelines and principles and is not a comprehensive plan for a replacement compensation strategy.

Platform by Wells Fargo members of the Committee for Better Banks:

A roadmap to move forward following the elimination of sales goals and quotas

WORKER PROTECTIONS: Wells Fargo workers should have a collective voice and representation in the discussions of the replacement compensation strategies. Lack of a collective voice and protections for workers created an environment where workers were subjected to intense pressure under the previous cross-selling and sales goals systems. Wells Fargo should remedy the toxic environment by providing a statement of recognition of the collective rights of the workers and a commitment of no retaliation for workers who come together to collectively represent their interests.

WAGES: The elimination of sales goals should not result in a reduction of workers’ compensation. Frontline workers should receive a base wage of at least $20 per hour and should increase according to seniority and skill level. Base wages should comprise a living wage and employees should not be dependent on incentive compensation for basic survival. Incentive compensation should not exceed 5% of overall compensation.

INCENTIVE COMPENSATION: Incentive compensation should only be based on collective measures of customer service and should not be based on sales. Measures of customer service performance metrics should be developed with worker in-put and should emphasize the genuine needs of the customer; informing customers with impartiality and rigor about the various service options; explaining the relevant risks, costs and fees; and ensuring that services are sold in compliance with internal procedures and banking regulations.

MONITORING OF CUSTOMER SERVICE METRICS: Customer service metrics should encourage collective effort and team-building. Incentive compensation should be based on collective achievement of customer service metrics (by branch or team) and should not be based on individual scores. Managers should be prohibited from posting individual customer service scores and rankings in public workplace areas. Managers should be prohibited from engaging in bullying tactics regarding customer service scores. Managers should be prohibited from phoning, texting or emailing workers about their customer service scores during non-work hours.

TRAINING AND SHARED RESPONSIBILITY: Wells Fargo employees should receive rigorous training to meet high standards for customer service. Customer service scores should not be a subject of discipline or termination. Teams (and their managers) that consistently show low customer service performance should receive additional training to build professional capacities aimed at risk management, quality of customer service, product knowledge, and shared responsibility between management and employees for customer satisfaction.