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Wells Fargo overhauls employees pay plan after fake-account scandal

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After Wells Fargo was ordered to pay $185 million in refunds and penalties for opening unauthorized accounts to meet high-pressured sales goals, the bank has created a new system to tackle issues tied to the fake account fiasco.

The company says it will ditch the incentive compensation system and move to a system that awards employees based on frequent customer account use and whether or not the customer is satisfied with their service, according to consumerist.com.

Under this new system, accounts must be open for at least three months before an employee receives compensation. Employees will also be able to earn positive remarks based on customer surveys, as well as surveys taken by shoppers who visit the branch.

Along with promoting better customer service, Wells Fargo says it will increase the base pay among their workers depending on where they live and professional experience. This means that about 95% of pay will be base pay.

“How are they going to define a job well done? That’s what we don’t know,” Margaret Kane, founder of bank sales consulting firm Kane Bank Services, tells the Tribune. “What they’re doing is totally the way they should be going, but the devil is in the details.”

I’m sure we are all waiting to see how this new strategy will turnout for the big branch.

This report contains information from consumerist.com

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