March 2016, by Stephanie Matthews, Director
The right remuneration policies and practices can make sure employees are acting in the long-term interest of the brand and its customers. Vodafone is leading the way. The brand idea ‘Power to you’ is based on the company playing a positive role in supporting customers to be at their best. This purpose is embedded into their business, in all the ways we hope it would be.
Last year they reported that their annual bonus (‘GSTIP’) pay-out was dependent upon performance across three financial measures (service revenue, EBITDA, and adjusted free cash flow) and one strategic measure (Competitive Performance assessment) with each having an equal 25% weighting. The Competitive Performance assessment was based on a market-by-market assessment of measures including NPS performance and relative revenue market share.
In their 2015 annual review they announced an even sharper brand focus:
“We are making two changes for the year ahead to underline the importance of providing the best possible customer experience. We will rebalance the weightings of the performance measures with 60% being equally split across the financial measures and 40% weighted to the strategic measures. In light of this increase in weighting the Competitive Performance assessment will be replaced by Customer Appreciation KPIs which will continue to include an assessment of NPS and we will add in Brand Consideration along with other customer measures.”
All power to them.
By Stephanie Matthews, Director