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In preparation for the collective labor agreement negotiations, we have sent out various surveys on the topics suggested by our members. A survey has been sent out about reward systems, workload and training and development opportunities. You can take the latest survey here still to be completed until August 18. Are you curious about the responses to the questions about the reward system? Then read on below.
The survey about the discretionary increase based on performance and salary increase during development steps
In the previous collective labor agreement, agreements were made about budgets for the discretionary increase based on performance and the salary increase for development steps. Here you can read exactly what was agreed about this. We asked ING employees about the application of these expanded budgets. You will find the quantitative answers of our respondents here back. You can read our findings below.
The current discretionary increase
At the moment, the fixed salary increase at ING is only 2%, or 1%, depending on whether you are below or above the middle of your salary scale. In addition, you may receive an individual discretionary increase based on your performance. The fixed salary increase was reduced during the previous collective labor agreement negotiations. The scale increase varied between 1,5%, 2% and 3% depending on your scale position. When reducing the fixed salary increase, ING indicated that it would double the budgets for discretionary powers. This way they could reward more based on performance. We asked employees about their experiences with this new system.
What do employees think of the current reward system?
The survey shows that:
- 77% of respondents consider the link between rewards and their own performance to be important
- 71% of respondents indicate that they are not satisfied with the way ING is currently shaping this link. Compared to the current situation, they prefer a higher fixed individual increase without link to their own performance.
- Only 33% of respondents reported receiving a discretionary increase.
- Of those who received a raise, nearly 48% reported it was 1% or less.
- The majority of employees do not agree with the method of granting discretionary power; only 19% rated it as good or very good.
From the open comments it can be deduced that:
There is particular criticism of the lack of transparency regarding the conditions for allocation, the final method of allocation and the available budget. There is frequent criticism about the amount of the increase and the subjectivity involved in granting the increase. In addition, we receive responses that indicate that leads are not given enough space to use the budget based on the performance of all team members, or that it is not possible to deviate from an average increase because 'too many members in a team are good'. to perform''. Suggestions are also made to set up a share plan for employees as a reward, as is the case at ASR.
How is the remuneration system arranged at other financial companies?
The scale minimum and the scale maximum per salary scale are approximately the same for financials. The scale minimum starts at approximately 70% of the scale maximum. All financials grant an individual salary increase annually until the employee has reached his or her scale maximum.
At ING, some functions are divided into different levels. These junior, medior or senior levels fall into different salary scales, which also affects how long it takes before you reach the maximum salary for your position. In other financials, the distinctive levels are seen as different functions.
Rabobank
- An annual individual salary increase is linked to the assessment. That is: 5% of the salary for an exceptionally good year, 2,5% for a successful year, 0% if improvement is needed.
ABN Amro
- There is a fixed periodic increase of 2,5% of the salary regardless of position in the scale or performance.
- There is an annual appreciation premium that depends on performance. This varies between 2,5% and 5% depending on simply good or above-average performance. You are not entitled to it if you perform inadequately.
– This appreciation premium is a one-off payment at the end of each year.
– It is also available to employees at the end of their scale.
NN
Employees receive an individual salary increase every year. The amount of the salary adjustment depends on the scale position and the assessment. Employees in the bottom half of the salary scale will in principle receive an increase of 3,5% of their salary. If they are in the top half of their salary scale, the individual salary increase will in principle be 2,5%. The assessment may be a reason to deviate from the 3,5% or 2,5%.
ASR
- There is an annual fixed increment of 3% of the scale maximum.
Achmea
- There is an annual fixed period of 1/10 part of the difference between the scale minimum and the scale maximum.
Application of these rules, during normal functioning at these companies, leads to the following salary development for someone who starts at 70% of the scale (at the bottom).
After five years you have received more than 21% salary increase at Achmea and ASR. ING is by far the worst performer, with a salary that is barely 10% higher than at the start. At ING it takes no less than 26 years to grow from scale minimum to scale maximum. For comparison: that is 10 years for Achmea and ASR.
The salary increase for development steps
To encourage internal mobility, new agreements have been made in the current collective labor agreement regarding salary increases in the event of a change in position. When you start a new position in a higher job scale, you will receive a minimum of 3% and a maximum of 12% increase (article 4.9.1. ING collective labor agreement). In the previous collective labor agreement this was between 2,5% and 5% (article 4.11.1 ING collective labor agreement 21/22). If you take on a new position that is classified in the same job scale as your current position, your salary will be increased by a minimum of 3% and a maximum of 6% (article 4.9.3. ING collective labor agreement). In the previous collective labor agreement you transferred horizontally, which means that your salary remained the same, unless it was lower than the lower limit of the salary scale of your new position.
What are the employees' experiences with these adjustments?
Regarding the extended salary increases for development steps, 12% of employees experienced an improvement. The majority (37%) noticed no difference, and 41% had no experience or opinion about this.
We cannot draw clear conclusions from the answers to the question about the amount of the increases, because the conditionality of the questions in the survey was not properly set up. Respondents who did not take a development step also had to indicate how much increase they received.
In general, people are positive about receiving an increase when taking a development step and it is also indicated that it motivates them to develop. We have received a number of points of interest in the open comments field. The most striking and frequently recurring reactions:
- Transparency is lacking.
- Remove the subjectivity and agree on fixed percentages, not bandwidths.
- There is uncertainty about when a new position will be available.
- A discussion about the changed employment conditions during a development step should be a permanent part of the process.
How further?
During the last collective labor agreement negotiations, ING made a number of changes with regard to the individual salary increase. Not all of these changes have proven to be improvements. The salary increase for development steps has been well received, but we can still improve the process.
But ING now has the lowest individual salary adjustment of all financials. Doubling the discretionary space does not compensate for this. And employees are dissatisfied with the lack of transparency in discretionary allocation. De Unie sees various opportunities for improvement. We can propose to increase the individual salary adjustment to a market level. But making the assessment process more transparent will also lead to improvements. We would like to discuss this with ING.
Also ask your colleagues to participate
The more employees complete the survey, the better De Unie can indicate to ING how the collective labor agreement in the field of training and development can be adjusted. Let your colleagues also read this message and ask them to complete the survey. De Unie treats the information confidentially.
Always be the first to know! Register immediately for our WhatsApp group “De Unie @ ING”, we will also keep you directly informed of the latest news in this way. Registering is very easy.
Contact
If you have any questions or comments about this message, please contact us. This can be done by sending an email to: mandy.raijmakers@unie.nl of inge.de.vries@unie.nl.
