Seminar Two Application Assignment
Synopsis:
Over the years there have been many cases of employee fraud or unethical behavior when talking about sales incentives. The most recent case I am aware of is the recent issue at Wells Fargo. It is reported that more than two million fake accounts where opened in customer’s names to meet unrealistic sales goals (Egan, 2016). Five thousand three hundred employees were reported to be fired due to the incident and the bank was fined one hundred eighty-five million dollars (Egan, 2016). It appears that Wells Fargo was aware of this issue since at least 2011 and was unable to stop the problem (Egan, 2016). The Consumer Federal Protection Bureau revealed the scandal in early September (Egan, 2016). …show more content…
After reviewing the data and comparing the data to those of other frontline staff, it was determined that the staff member was abusing the system in attempts to inflate their sales referral numbers. Reviewing transaction activity and member actions, in terms of products sold or sales production, it was evident this employee was not having the conversations with the members and was operating in an unethical fashion that did not meet the core values or principles supported by management or the credit union. Although there was definitely one individual who was by far the largest violator of this referral program, there were several others that were also taking some of these same steps to ensure they were meeting their goals. It was evident from the data that some were only participating in these activities occasionally, if sales goals were low for the months and they were not using these unethical tactics daily, as the individual who had started this unethical behavior. The manager of this branch was brought into the investigation early in the process and did agree that this was unacceptable behavior and was not surprised of the discovery. She was new to this location and was working to change the production at that location as it had been a low producing branch prior to her arrival. An additional indicator of the false referral numbers was the lack of results. The credit union typically experienced a certain percentage of sales to referral results. Not every referral turns into a sale, but there is a positive correlation between the number of referrals to the number of sales. As a branch is developed and staff became more experienced, you will see an increase in referrals and as a result there will be an increase in sales. This was not the case for this branch, or for these individual staff members. There was definitely a significant increase in referrals, but the sales results did not support the
Synopsis:
Over the years there have been many cases of employee fraud or unethical behavior when talking about sales incentives. The most recent case I am aware of is the recent issue at Wells Fargo. It is reported that more than two million fake accounts where opened in customer’s names to meet unrealistic sales goals (Egan, 2016). Five thousand three hundred employees were reported to be fired due to the incident and the bank was fined one hundred eighty-five million dollars (Egan, 2016). It appears that Wells Fargo was aware of this issue since at least 2011 and was unable to stop the problem (Egan, 2016). The Consumer Federal Protection Bureau revealed the scandal in early September (Egan, 2016). …show more content…
After reviewing the data and comparing the data to those of other frontline staff, it was determined that the staff member was abusing the system in attempts to inflate their sales referral numbers. Reviewing transaction activity and member actions, in terms of products sold or sales production, it was evident this employee was not having the conversations with the members and was operating in an unethical fashion that did not meet the core values or principles supported by management or the credit union. Although there was definitely one individual who was by far the largest violator of this referral program, there were several others that were also taking some of these same steps to ensure they were meeting their goals. It was evident from the data that some were only participating in these activities occasionally, if sales goals were low for the months and they were not using these unethical tactics daily, as the individual who had started this unethical behavior. The manager of this branch was brought into the investigation early in the process and did agree that this was unacceptable behavior and was not surprised of the discovery. She was new to this location and was working to change the production at that location as it had been a low producing branch prior to her arrival. An additional indicator of the false referral numbers was the lack of results. The credit union typically experienced a certain percentage of sales to referral results. Not every referral turns into a sale, but there is a positive correlation between the number of referrals to the number of sales. As a branch is developed and staff became more experienced, you will see an increase in referrals and as a result there will be an increase in sales. This was not the case for this branch, or for these individual staff members. There was definitely a significant increase in referrals, but the sales results did not support the