IAG New Zealand has stopped incentivising employees based on sales targets.

Chief executive Craig Olsen said it was the culmination of an on-going process of review and change over recent years.

“IAG New Zealand has had a long-standing commitment to a balanced scorecard with regard to rewarding staff which has seen an incremental reduction over the past few years in the value of sales incentives in our performance framework.”

He said the insurer had decided to completely remove sales target incentives from staff objectives from July 1.

That would help support customer requirements from a service and needs basis, he said.

“To demonstrate we are truly purpose-led and to create world-leading customer experiences, we are continually assessing our current business practices and future approach.

“We know that customer and community sentiment is evolving, people expect to receive a great experience. Removing sales targets will further enable IAG to build a culture that has our people and customers at the core of everything we do.

“Over the last three years we have continually reduced individual objectives around sales. In the current financial year, we introduced an objective to place less emphasis on the outcome and more emphasis on the customer experience. The latest move means will we have zero incentivised sales targets.”

Stephen Parry, national organiser for finance at the First Union, welcomed the move, saying it was a huge first step.