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Representatives of HR departments of local commercial banks and credit organizations in HR Management Training. |
Converse Bank new bonus system improves staff performance
After training, changes implemented by the Human Resources office of Converse Bank resulted in increased flow of funds through bank services.
In November-December 2006, a series of two-day seminars on Anti-Money Laundering, Payment Systems, Customer Service and Human Resources Management were organized for medium- to high-level staff of Armenian commercial banks and credit organizations. A total of 105 participants from various commercial banks and universal credit organizations attended the seminars.
An expert from the US-based company, Bankworld Inc., worked with Armenia’s Converse Bank on topics such as the performance evaluation system, the compensation system (especially how to determine bonuses), and the use of individual goal statements to include in the performance evaluation system. Bankworld provided a software program for HR needs assessment.
Following the training, Converse Bank introduced several HR changes, including a new bonus system in which the bank identified strategic directions for further development (deposits, plastic cards, consumer cards and Internet banking) and tied the employee bonus system to these new directions rather than to other less important types of operations (e.g. buy/sell of foreign currency).
Converse Bank also changed the bonus program from a bonus to departments program to a bonus to individuals program. The Bank identifies key staff who are the driving force in their departments, and offers bonus incentives based on their performance.
As a result of these changes, Bank staff is more motivated due to the new bonus system, and there has been an increase in client use of the newly identified strategic services (deposits, plastic cards, consumer cards and Internet banking) by 4-5% within the last 5 months.
Publication Date: 2007-10-15
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