Brokers are increasingly being judged by the efficiency of their work and not just the funded volume of their labour, with two channel players formally updating reward programs to better reflect that metric.
With the introduction of a new broker bonus program, National Bank is betting rewards for broker efficiency will bolster both the client experience and broker satisfaction at the same time it slashes originations costs.
Mono-line Canadiana is making a similar wager in treading out an update to its own compensation plan. The new-and-improved includes an Instant Reward option -- an upfront lump sum payment in addition to a bonus for meeting efficiency targets.
“What efficiency does do is that it allows us to revise and create a compensation plan that rewards brokers at renewal,” said Philip Beer, VP of national sales for Canadiana. Also effective May 1 is the lender’s “Freshly Brewed Renewal” plan, which pays not just upfront, but also at renewal.
National Bank used the start of the month as well to officially launch its efficiency bonus program. It pays out bonuses to brokers on a monthly basis.
The program also continues use of the tiered system, specifically four levels based on broker’s approval and approved fund ratios. It will see them earn anywhere from five to 20 basis points.
While the top two levels will only be available to broker who are members of the bank’s Red Carpet program, its new efficiency bonus program will be national, allowing brokers from all provinces to take advantage.
In crafting the program, National said it started by creating a baseline for efficiency ratios based on broker scorecards. The efficiency ratios to be used will be based on a six-month rolling average whereby the last 90 days are discounted, meaning, for example, a May efficiency bonus will be based on ratios from September to February.
In addition to the efficiency bonus program, the bank also adjusted its volume bonus program, also rolled out May 1.