How Can We Improve Bonus Systems to Avoid Unhealthy Competition Among Loan Officers?

Dear colleagues, could you please advise me on any resources (or personal practices) where I can find best practices on rewards based on evaluation? I am an HR professional at the bank, and we have loan officers who receive bonuses for the loans they sell. However, this system has led to many problem loans and unhealthy competition among employees.

Thank you in advance.

If you are not in a hurry and want to develop a robust reward calculating and performance system, I suggest you go for SEI Institute's KRA, i.e., Key Result Area. Basically, I have developed a detailed specification based on the KRA of SEI's five levels. You can use KRA to judge the performance of each employee, and it would also help you resolve conflicts between them. Design the KRA for each employee and ask them to fulfill the criteria and evaluate them. It is a widely adopted performance management system, even by large international MNCs. You will easily find information on the web about it.

Thank you