Winning Awards – Rewarding the Behaviour You Want
July 12, 2011
I do not often reflect on our successes for long. However, we have had such a great run recently, and I want to make a point on the back of it.
In June, Young London won six awards, three at The Times & Sunday Times Lettings Awards and three South London Business Awards supported by HSBC. The theme in the judges comments was around our focus on customer service, specifically that we reward our team on customer service feedback, not on a standard commission structure.
We made this change in our remuneration process last year, and it seemed obvious to us that we should have done it sooner.
We focus on customer service and our mantra is giving ‘amazing service’, so it seemed logical to reward based on this. We questioned how you can say at staff meetings that customer service is central to Young London when you are then paying commission only based on revenue?
Once again last week we had a great example of how this generates teamwork rather than the selfish approach that a commission structure encourages.
In short, we had two applicants (being dealt with by two different consultants) after one property. Once one of them secured the property, the consultant whose applicant missed out congratulated the other consultant.
No hard feelings, no bad atmosphere in the office – exactly the behaviour you want to see, well done Tembi!
When I mention our commission structure, I often get asked about hard top line targets. Our philosophy is that if we are looking after our clients well, the financials will follow.
Do not forget I have been a qualified accountant for over 15 years, as has David our Director of Asset Management (he has recently been elevated to Fellow of our Institute). It shows a balanced business scorecard does work, and should be weighted towards the business behaviour you want to encourage.
As you can tell, I am very proud of the recognition we have received as a team as it drives us on to keep delivering to our clients.
As further proof that rewarding the right behaviour works, to date in our current financial year our revenues are up over 20% compared to last year!