Product Sales Specialist Agreement

COMMUNICATION

WORKERS UNION

Wednesday, 16 April 2008

A website for CWU Counters members in the North

Northern Territory

Agreements

National Agreement between Post Office Ltd and CWU for the Introduction of Product Sales Specialist allowance and incentivisation arrangements.

1. INTRODUCTION AND PURPOSE

The Crown Career Path and introduction of an allowance for Product Sales Specialists (PSS) was agreed with CWU and introduced as part of the recent pay agreement.

PSS will play a key part in growing the sales performance of the Crown Network. PSS will specialise in sales of either bureau and/or telephony products.

Each Crown Office will have the potential to have at least one PSS and there will be no cap on the number of colleagues in receipt of the allowance provided they are self funding by increases in personal sales above the branch Focus product sales income target.

2. KEY PRINCIPLES

· The PSS will work on the business side of the counter or Postshop and will be an integral part of the branch team working together to achieve the overall branch targets

· Be self-funding by ensuring targets are sufficiently stretching to justify the additional investment

· Individually incentivise and reward the PSS through an allowance and commission payments for their contribution to the overall sales performance of the branch

· PSS working in Post shops will specialise in telephony products only

· Where a branch has more than one PSS, each individuals performance will be recognised

3. EFFECTIVE DATE

The PSS allowance will be introduced at eligible branches from 1 April 2008.

4. ATTENDANCE

PSS will work on their normal duty rotation and will continue to be included in the team pool for annual leave.

5. TOOLS FOR THE JOB

PSS will have an individual sales code to be able to accurately identify their sales and commission.

6. CRITERIA FOR PSS ALLOWANCE AND COMMISSION PAYMENTS

6.1 The PSS will receive a pensionable allowance of £1000 per annum on top of their existing basic pay. The allowance will be paid monthly and for part time colleagues is pro rata for actual hours worked.

6.2 Eligibility for the PSS allowance is dependent upon:

· the branch target threshold of 90% focus product sales income being achieved

· the individual having demonstrated an ability to regularly close sales of bureau and/or telephony products.

6.3 Branches will be notified when they have reached the focus product threshold run rate and therefore may assign the allowance to team members. See appendix A for a list of branches that currently meet the branch target threshold.

6.4 Provided the criteria in 7.2 is met colleagues in the branch may either be invited by their line manager or express an interest in attaining the PSS allowance.

6.5 The PSS must achieve their personal sales income target year to date run rate of £1750 from sales of bureau and/or telephony products to retain the allowance. Eligibility for the continuation of the allowance will be reviewed in April and October.

6.6 PSS will have the opportunity to increase their earnings through uncapped commission, based on their performance above their personal sales income target of £1750. Commission payments are not pensionable and are paid quarterly.

6.7 Commission is paid at a rate of 20% of the nominal income factor of each of the bureau and telephony products sold. Individual product commission rates are as appendix b. The nominal income factor and commission rate will be reviewed annually to ensure it continues to be self funding and may be subject to change.

6.8 PSS below Advanced Level will continue to progress their basic pay along the career path.

6.9 PSS will continue to receive an equal share of the Branch Bonus Scheme.

6.10 In all cases of long term absence the allowance will be retained until the next six month review date at which point the individuals run rate will determine whether the allowance may be retained.

7. TARGETS

Focus product sales income targets are set annually which will be a total value in £’s. The cumulative run rate is reviewed monthly.

7.1 Individual targets

The PSS earns their allowance by making additional individual sales on top of the branch Focus product sales income target (pro rata for actual hours worked for part time colleagues) as follows:

Allowance Target Threshold

Branch Focus product target + £1750 individual sales = £1000 PSS allowance.

Individual PSS sales performance within the branch will be tracked and must be maintained above Focus product sales income target cumulative run rate in order to retain the allowance.

The level of £1750 sales income will be reviewed jointly with the CWU to ensure this level remains fit for purpose.

7.2 Multiple PSS in Branch - Qualifying target

Where there is more than one PSS, each individuals’ sales performance will be measured against the qualifying target above to determine their continued eligibility for the £1000 allowance.

8. MEASURING PERFORMANCE

PSS performance will be reviewed and discussed monthly with their Line Manager, as part of the standard PDR process. On a regular basis they will be made aware of their personal sales performance on telephony and/or bureau products and cumulative run rate against annual Focus product sales income target.

The branch has to achieve a year to date run rate each quarter sufficient to meet the annual Focus product sales income target.

In April and October individual PSS sales year to date run rate will be formally reviewed to determine continued eligibility for the allowance.

Additional coaching and support will be provided to help the PSS maintain or improve their sales performance, to the required level within the next six months.

8.1 Branch below 90% of Focus Product sales income target run rate at 6 monthly review or 90- 99% at two consecutive reviews

Where a branch achieves less than 90% of their year to date Focus Product sales income target at the six month review or between 90% and 100% on two consecutive reviews, the Line Manager may recommend to the Business Development Manager that the PSS either retain the allowance or lose the £1000 allowance and receive commission on individual sales until the next six month review.

8.2 Branch below 90% for rolling twelve month period

In the event of two consecutive less than 90% performances at six monthly reviews, the PSS will lose their allowance. In these circumstances the Regional Manager, and the P&OD Business Partner must be involved in the decision, to ensure consistency of approach. Normal appeal arrangements will apply.

9. REVIEW

It is recognised that the introduction of the PSS allowance is an important new development. The application and success of this initiative will be reviewed jointly with CWU.

Andy Furey Debbie Moore

Assistant Secretary CWU HR Director POL