UBS ‘no bonus’ pay structure likely to send top talent packing
Wednesday, November 19th, 2008
UBS will struggle to retain its top talent under its new no bonus pay structure, and may see its most valuable employees leave or poached by others companies as their trust and loyalty wavers, warn HR experts at Leadership Company Dynamic Transitions.
Experts at Dynamic Transitions predict that the new bonus structure, including the introduction of the new ‘maluses’, where bonuses can be cancelled out completely if targets are not met, is likely to spell further trouble for the struggling bank, and will not just affect the poor performing employees as intended, but also the top performers too.
“Mavericks tend to be the most talented individuals in the company and are not motivated by money. For them, it is not the withdrawal of the bonus that is the issue, but the way it appears to have been imposed. Mavericks by nature are incredibly loyal, and the concept of being rewarded in the good times and not the bad is in keeping with their work ethic, as they will do all they can to see the business survive through troubled times”, explains Judith Germain, MD of Dynamic Transitions and founder of Maverick Mastery™.
Germain believes that bank’s plans to recapture so-called ‘undeserved bonuses’ and to retain bonuses in special holding accounts for up to five years will be disastrous for the morale and motivation of their employees and will simply encourage their most talented employees to leave the organisation.
“Mavericks are wilfully independent people who typically thrive on autonomy, trust and doing what they believe is right. The new scheme will not sit well with these individuals and may well prompt them to look elsewhere, leaving UBS with the prospect of facing a talent shortage in the immediate future. And in crisis times, the last thing you need to be worrying about is losing your best talent”, adds Germain.
You can find out more about managing talented employees by downloading ‘Understanding Mavericks in the Workplace’ from www.developing-leadership.com/leadership-whitepapers.html. For further information or to find out more about Dynamic Transitions visit www.developing-leadership.com.
