fb

If you make your sales targets you’ll get a what!?

German insurance company Munich Re is the world’s largest re-insurer. It has just been revealed that a few years ago they undertook what can only be described as a fairly unusual (plus arguably immoral and unethical) approach to rewarding some of their top salesmen.

Now whilst most successful salesmen would be happy with a traditional bonus of extra pay the Ergo division of Munich Re reportedly held a party for their successful salesmen at thermal baths in Hungary where the services of a number of prostitutes were made available to the successful salesmen.

There’s a well known 2-factor motivation theory by Frederick Herzberg which refers to two types of factors that are present in an employee’s job.

A Hygiene factor is something which is expected to be present. If it is present, it doesn’t motivate. If it isn’t present however then the absence de-motivates. Basic pay and conditions are classic hygiene factors in a job.

A motivating factor on the other hand is something that is above and beyond what is expected to be present and such a factor should motivate an employee.  An exceptional boss who fully involves and mentors a junior could arguably be a motivating factor.

Munch Re took an extremely unusual view on what constitutes a potential motivating factor.

The salesmen that achieved their targets were provided bonuses in the form of access to prostitutes at a company funded party.

The salesmen were joined by 20 prostitutes at this party.

According to German business newspaper Handelsblatt , some of the prostitutes wore colour coded wristbands with ladies who were wearing certain colour wristbands only being available for the more successful salesmen.

In addition, after each “encounter” the prostitutes providing the service were stamped on their lower arm in order to keep track of how much they had earned during the evening.

It’s not clear from the reports whether any of the weaker performing salesmen that didn’t achieve their targets also ended up with stamps on their lower arms at the end of the party.

If you found this interesting you may also like:

Share this entry

Recent articles

View All Articles
PwC Australia and the “Rule of Three”
Sep 21, 2023
Title
PwC Australia and the “Rule of Three”
Excerpt

As the future business leaders of tomorrow, it’s crucial for students to stay updated on key developments in […]

CIMA VS ACCA: which is best for you? (and what about CMA?)
Sep 15, 2023
Title
CIMA VS ACCA: which is best for you? (and what about CMA?)
Excerpt

When it comes to a career in accounting or finance, deciding which professional qualification to pursue can be […]

How’s your lipstick?
Sep 12, 2023
Title
How’s your lipstick?
Excerpt

In the world of business, understanding consumer behavior is crucial. The “lipstick effect” offers a fascinating glimpse into […]

How an online Certified Management Accountant (CMA) course can advance your career.
Sep 05, 2023
Title
How an online Certified Management Accountant (CMA) course can advance your career.
Excerpt

In today’s fast-paced and competitive business world, professionals are constantly looking for ways to differentiate themselves and advance […]

Waiting for your ACCA exam results…
Sep 01, 2023
Title
Waiting for your ACCA exam results…
Excerpt

Waiting for the results of your ACCA exams can be an incredibly stressful time. The uncertainty, the anticipation, […]

APM vs AFM ACCA: which path suits your career goals?
Aug 30, 2023
Title
APM vs AFM ACCA: which path suits your career goals?
Excerpt

“Which is easier – Advanced Performance Management (APM) or Advanced Financial Management (AFM)?”

ROI: how enrolling employees on ACCA courses will yield long-term business success
Aug 18, 2023
Title
ROI: how enrolling employees on ACCA courses will yield long-term business success
Excerpt

The Association of Chartered Certified Accountants (ACCA) is one of the most respected global accounting qualifications. Organisations across […]

Would Michael Porter sleep in this bed?
Aug 14, 2023
Title
Would Michael Porter sleep in this bed?
Excerpt

Management theories play a significant role in guiding corporate strategy. And when it comes to strategy and management […]