UK - Insurers, Bankers Can’t Be Scared
Wednesday, 06 24 2015, Category: Insurance and Reinsurance, Country: United Kingdom
A get-tough approach to poor employee performance, in terms of behavior and reaching targets, risks creating a climate of fear and breeding more unethical conduct in financial services – the opposite of what regulators, businesses and the public want, according to a joint PwC and London Business School report titled “Why you can’t scare bankers into doing the right thing.”
The report, based on a study of 2,431 managers from UK financial services organizations representing banking, insurance and wealth management, reveals that when presented with situations where the negative consequences or punishment for poor performance were highlighted, managers were 15 percent more anxious than excited, leading them to be more than twice as likely to behave unethically.
Managers presented with the same situations, but with the positive outcomes of success highlighted, were correspondingly more excited, leading them to be more than twice as likely to demonstrate innovative behavior.
Source: Insurance Journal