Employer retracted an incentive

Employer retracted an incentive

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AOK

Original Poster:

2,297 posts

166 months

Monday 9th March 2015
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Not actually planning on causing trouble over this, but just wondering where my employer stands on the following...

In Jan the sales teams where I work were invited to join an incentive, whereby the best achievers between Jan and March would be flown all-expenses-paid on a 1 day trip to a large motoring event which takes place around now. All in, there were about 30 places to battle for.

After the deadline the winners were emailed asking what flights we'd like to choose (given a choice of easyJet from Stansted, Swiss from City or BA from Heathrow). A few days later we start hearing rumours from one of the other teams that the trip has been cancelled. Alas, we get an email from our line manager who was off-site at the time confirming this. Furthermore, the line manager was so disappointed by the senior management's decision to cancel the trip and destroy the awesome morale it had created that they actually forwarded us the MD's email which basically said "costs have spiraled in excess of £20k and its just not economically viable to proceed at such a late stage. please convey this to your teams"

Surely they knew how many people were going, how much flights would be, how much event tickets etc would be...

Just a bit lousy really to hang a carrot and then pull it away like that, although I imagine much worse happens in other organisations!

jkh112

22,002 posts

158 months

Tuesday 10th March 2015
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Not a great way for an employer to behave. If it is cancelled only because costs have spiralled outside of what they had in the budget then why not ask your manager what they intend to offer instead of the trip with the budget they presumably still have available?

Du1point8

21,607 posts

192 months

Tuesday 10th March 2015
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Wow...

I bet with those 30 people going for the places they made way more than the £20k needed for those several months when people were selling as much as possible.

AOK

Original Poster:

2,297 posts

166 months

Tuesday 10th March 2015
quotequote all
Du1point8 said:
Wow...

I bet with those 30 people going for the places they made way more than the £20k needed for those several months when people were selling as much as possible.
The incentive ran for 6 weeks and, at full pelt, I envisage each of us bring in a minimum £2k and maximum £4k of profit (after our salaries) per week. If the incentive increased productivity by 10%, that's circa £50k extra profit!

I've just noticed this line in the MD's email:

"In lieu of XXX, we should consider whether to organise a more inclusive and local celebration of the achievements for Q1 as a whole, perhaps sometime in April" ...sounds to me like some pizzas and a bar tab at the local restaurant for the whole sales team, not just those who actually won a place! Will report back with what transpires.

Personally, if the budget was £20k (or even £10k)... I'd be happy to just receive an extra £500 on my pay cheque this month and be done with it!


Jasandjules

69,887 posts

229 months

Tuesday 10th March 2015
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Was the incentive put in writing?

andy-xr

13,204 posts

204 months

Tuesday 10th March 2015
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It's probably also that they then have to account for it as well. Spiffs are great, but when you get hit with a tax bill at the end of the year you start to think twice.

It's stty that they've canned it, but I dont think legally you've got anything to chew on, just one of those things. Make sure you rinse the bar at the pissup instead.

AOK

Original Poster:

2,297 posts

166 months

Tuesday 10th March 2015
quotequote all
Jasandjules said:
Was the incentive put in writing?
All we had was the following email plus weekly updates with scores on the doors.

"I'm pleased to say that this quarter you can also qualify for a free trip to the XXX show with all-expenses-paid! This competition will be from 05/01 till 20/02 and I have attached your individual targets for the competition which are weighted accordingly. We have 6 places up for grabs and should more than 6 people hit their quota they will go to the highest % achievers over target. I hope this all sounds straightforward and good luck! Regards, Mr Line Manager"

I have paraphrased the real text as I'm paranoid about them using Google to try find rats!

Du1point8

21,607 posts

192 months

Tuesday 10th March 2015
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AOK said:
Jasandjules said:
Was the incentive put in writing?
All we had was the following email plus weekly updates with scores on the doors.

"I'm pleased to say that this quarter you can also qualify for a free trip to the XXX show with all-expenses-paid! This competition will be from 05/01 till 20/02 and I have attached your individual targets for the competition which are weighted accordingly. We have 6 places up for grabs and should more than 6 people hit their quota they will go to the highest % achievers over target. I hope this all sounds straightforward and good luck! Regards, Mr Line Manager"

I have paraphrased the real text as I'm paranoid about them using Google to try find rats!
I assume you forgot in your paraphrasing to include the prize listing (don't want them to find out)... or was it just the word competition and then rumours that you would be going somewhere?

AOK

Original Poster:

2,297 posts

166 months

Tuesday 10th March 2015
quotequote all
Du1point8 said:
I assume you forgot in your paraphrasing to include the prize listing (don't want them to find out)... or was it just the word competition and then rumours that you would be going somewhere?
The word 'competition' related to the incentive mentioned in the preceding sentence.

Edit - the bit about 'weighting' was only because we all sell different volume depending which sub-team we are. We were all battling for the 6 equal spaces to go on the trip but each had an individual target to unlock the prize (difficult to explain, but that bit was fair of them)

Edited by AOK on Tuesday 10th March 11:59

Du1point8

21,607 posts

192 months

Tuesday 10th March 2015
quotequote all
AOK said:
Du1point8 said:
I assume you forgot in your paraphrasing to include the prize listing (don't want them to find out)... or was it just the word competition and then rumours that you would be going somewhere?
The word 'competition' related to the incentive mentioned in the preceding sentence.
doesnt say if its pizza and beers or a all expenses paid trip to paris though.

thats my point, does it say what the prize is?

hornetrider

63,161 posts

205 months

Tuesday 10th March 2015
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Du1point8 said:
doesnt say if its pizza and beers or a all expenses paid trip to paris though.

thats my point, does it say what the prize is?
Errr.... from above.


I'm pleased to say that this quarter you can also qualify for a free trip to the XXX show with all-expenses-paid! This competition will be from 05/01 till 20/02 and I have attached your individual targets for the competition which are weighted accordingly. We have 6 places up for grabs and should more than 6 people hit their quota they will go to the highest % achievers over target. I hope this all sounds straightforward and good luck!

Du1point8

21,607 posts

192 months

Tuesday 10th March 2015
quotequote all
hornetrider said:
Du1point8 said:
doesnt say if its pizza and beers or a all expenses paid trip to paris though.

thats my point, does it say what the prize is?
Errr.... from above.


I'm pleased to say that this quarter you can also qualify for a free trip to the XXX show with all-expenses-paid! This competition will be from 05/01 till 20/02 and I have attached your individual targets for the competition which are weighted accordingly. We have 6 places up for grabs and should more than 6 people hit their quota they will go to the highest % achievers over target. I hope this all sounds straightforward and good luck!
how did i miss that... I'm going back in my cage now...

Grumfutock

5,274 posts

165 months

Tuesday 10th March 2015
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Great way to destroy motivation and morale. If I was in charge then the idiot that was running this and had costed it would be looking at the door. Although if I was in charge then I would of taken the time to talk to everyone personally to limit the destructive and negative impact of such a stupid u turn.

I honestly wonder how some people get into management positions sometimes.

Sheepshanks

32,753 posts

119 months

Tuesday 10th March 2015
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I can't work out whether there was 6 people going or 30?

Has the cost risen simply due to the flights being expensive at short notice, and perhaps while the show is on?

AOK

Original Poster:

2,297 posts

166 months

Tuesday 10th March 2015
quotequote all
Sheepshanks said:
I can't work out whether there was 6 people going or 30?

Has the cost risen simply due to the flights being expensive at short notice, and perhaps while the show is on?
There's about 50-60 sales staff in the company, divided into teams. Our team was promised 6 spaces of about 30 in total across all teams.

The excuse was basically costs are higher than initially expected. Interestingly the email we received with the flight choices showed the prices.. BA was circa £400, Swiss (which was by far the best itinerary) was about £250 and the easyJet option was £150ish. In the MD's email they wrote that flights are in excess of £400pp... Not had we flown Swiss!

Hey ho. Will wait to see what (if any) replacement incentive they announce in April


Edited by AOK on Tuesday 10th March 14:07

AOK

Original Poster:

2,297 posts

166 months

Thursday 19th March 2015
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By way of an update, our line manager got in touch with the 8 of us who won a place for the trip and and as an alternative we have each been given £100 to spend on clothing/shoes or on a meal out + an additional day of annual leave to take before June.

The £100 has to be spent and then claimed back via our expenses system with receipts... no doubt they will try and put them through their books as company outgoings so they can claim back the VAT!

To be brutally honest, a better outcome than the original incentive as I've been to that particular event many times before! Overall, faith (slightly) restored.

Sheepshanks

32,753 posts

119 months

Thursday 19th March 2015
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AOK said:
The £100 has to be spent and then claimed back via our expenses system with receipts... no doubt they will try and put them through their books as company outgoings so they can claim back the VAT!
Unlikely, but you may find you have to pay tax on it!


red_slr

17,232 posts

189 months

Saturday 21st March 2015
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Flights.... nah. Get everyone on the train or better still hire a coach - its only 30 people!