Being a bank teller can be pretty tough sometimes. You interact with a lot of people and you’re trusted to handle those people’s money, but you’re also an employee of the bank. Just as in most workplaces, bank tellers are expected to abide by their employer’s policies, and that’s where the trouble started for Wells Fargo.
How Did Employee Sales Goals Lead to a Banking Scandal?
San Francisco banking giant Wells Fargo has always pressured its bank tellers and employees to sell consumers multiple banking products. The bank even went so far as to tie bank product sales to their employees’ compensation and even their employment. However, that pressure may have gone too far.
Feeling that their jobs were threatened, thousands of Wells Fargo employees created bank accounts and credit card accounts. These employees were trying to bolster their sales numbers in order to keep their jobs and get benefits, but they didn’t notify or ask consumers if they could open these accounts. It’s estimated that some 2 million fraudulent accounts were opened in this way, and around 5,400 Wells Fargo employees were terminated.
The bank was fined $185 million for this fake accounts scandal, and as the lawsuits from customers, whistle blowers, and former employees roll in, Wells Fargo estimates it will pay around $1.7 billion. This is all because of the bank’s impossible sales goals, which the company halted back in October 2016. However, it’s only now that the company is making real amends for its zealous sales tactics.
Wells Fargo is Changing Its Employee Pay Plan, Finally!
New employee compensation policies for Wells Fargo workers took effect January 1st. These employees will continue to have no sales goals, and will instead be evaluated by customer feedback and by product usage. Compensation packages will be base salary focused instead of focused on variable incentives like bonuses. The bank will also create goals based on branch performance rather than individual employee performance.
Do you think Wells Fargo’s new employee pay plan will prevent future bank fraud scandals? Do you think the move is enough to make up for the trust this bank has lost? Tell your Macon personal injury attorneys what you think on Twitter and Facebook. You can also keep up with the latest developments in this case by visiting our blog.