NFU Guidelines on Performance Measurement Systems
Executive summary
The primary focus of financial institutions is to provide responsible and sustainable financial services. A precondition to do this is that finance employees have the time and resources to provide customers with good advice and service. This is key to build trust and long-term growth for the financial sectors. It is also crucial in order to ensure employee well-being.
Performance measurement systems is a widespread phenomenon in the financial sectors. They are systems that collect, analyse and/or report information of an individual and/or group. The systems can for example measure sales targets, customer satisfaction and time on the phone or with customers.
In 2016 NFU published the report “Do you measure up? – A study of performance measurement systems in the Nordic financial sectors”. The result of the study tells us, just as previous studies and testimonies from the financial sectors, that there are many aspects to consider if and when using performance measurement systems. They could potentially have a negative impact on the employees’ health, well-being and performance at work as well as on the quality of service and advice provided to customers if not used and designed carefully.
The potential use of Performance measurement systems is a part of a company’s business and management strategy. The systems set the frames for how finance employees carry out and conduct their work and are often a part of the finance employees’ performance review. In the end performance measurement systems affect the company culture.
Therefore, performance measurement systems can never replace good management. With or without the systems, managers must always have leadership as the top priority. The role and responsibility of management to ensure sustainable financial services will remain regardless if any performance measurement or sales systems are in place.
The Guidelines are developed by NFU and NFU’s seven affiliated unions in the five Nordic countries and have been adopted by NFU’s Management Board on 23 November 2016.
