Migros Bank, the financial-services unit of the Swiss retailer, will stop paying its employees a bones. The company will retain a system to reward outstanding performance.
Migros Bank has decided to stop paying bonuses to its members of staff and 2018 will be the last year for which they can receive such payments. Migros Bank will move to a system of fixed compensation packages starting next year, according to a statement released on Monday.
«At Migros Bank, we believe that bonuses no longer are in keeping with the times,» said CEO Harald Nedwed. He has already made the switch to a fixed salary and has had no problem motivating himself.
One-Time Pay Increase
Bonuses are only paid if certain goals have been met, goals that sometimes are not in sync with company policy. They also tend to favor short-teminism.
Migros Bank has kept an element of specific rewards for outstanding performances and will set aside 70 Swiss francs ($69) per member of staff and year for this purpose.
The special bonus usually will amount to a few hundred francs on average. The cancellation of the bonus system isn’t meant as a way to save money, the company added. It will compensate the absence of bonuses with a one-time pay increase.
