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Hi Eagle, just a question here. I attended the interview for the SME sales banking job earlier. It's a entry level job. However they mentioned a 6 months bond will be offered to the successful candidate, I can understand that. But they mentioned a clause in this contract that if one fails to reach their individual sales target for 3 consecutive months, a penalty of $2000 must be paid by the employee. This applies even during their 6 months bond. Frankly speaking, since I do not have any sales experience, I am deeply concerned over this as I feel the nonperformance penalty is rather severe(and a little disconcerting). My question is, is such penalties common in the banking sector?
Hi Eddy, thanks for the question. Most banks would have the bond period, some shorter, some longer, but 6 mths is quite reasonable. As they would have spent resources training you, albeit most of the real training is on the job. To be asked to pay $2,000 just because you dont reach your individual sales target is unheard of. Most of the time, if you yourself want to leave within 6 mths, then you have to pay the bond money. Try asking them again whether or not the $2,000 penalty applies even if you work real hard and dont meet the target set by them? My advice is weigh the pros and cons, ie the pay and other benefits that the job offers against the 'rather severe' penalty. =)
Hi Eagle, the Budget speech today gave banks a slight breath of relief today. With the $5.8 billion bank stimulus plan the government announced, together with the risk sharing in loans by the govt, I think it would ease some of the horrible credit risk banks feared these past months. I'm not sure how soon will it take before banks are willing to reestablish credit lines or readjust lending criteria. Having said that,how has your bank reacted to the announced plan so far Eagle?
On a side note, its the third day since my interview for the SME job, the interviewer hasn't called but I'm pretty sure she must have sense my jaw dropping apprehension when she mentioned $2000 nonperformance clause. But I think we'll see as we go along.
Hi Eddy, we welcome the plan and will focus on those customers who need credit lines and the ones offered by Spring Singapore are actually really low in terms of interest. So SMEs will benefit greatly from them because their costs will be kept to a minimum. It is good for them as they would definitely need low-cost loans right now. Of course, other products are still saleable but we have seen a slowdown lately.
Banks will usually re-adjust their credit criteria every now and then to stay in line with the economy and the risk situation.
As for your interview, dont worry too much about it. If it is meant for you, it will be yours. =)
6 comments:
Hi Eagle, just a question here. I attended the interview for the SME sales banking job earlier. It's a entry level job. However they mentioned a 6 months bond will be offered to the successful candidate, I can understand that. But they mentioned a clause in this contract that if one fails to reach their individual sales target for 3 consecutive months, a penalty of $2000 must be paid by the employee. This applies even during their 6 months bond. Frankly speaking, since I do not have any sales experience, I am deeply concerned over this as I feel the nonperformance penalty is rather severe(and a little disconcerting). My question is, is such penalties common in the banking sector?
Hi Eddy, thanks for the question. Most banks would have the bond period, some shorter, some longer, but 6 mths is quite reasonable. As they would have spent resources training you, albeit most of the real training is on the job.
To be asked to pay $2,000 just because you dont reach your individual sales target is unheard of.
Most of the time, if you yourself want to leave within 6 mths, then you have to pay the bond money. Try asking them again whether or not the $2,000 penalty applies even if you work real hard and dont meet the target set by them? My advice is weigh the pros and cons, ie the pay and other benefits that the job offers against the 'rather severe' penalty. =)
Noted Eagle, thanks for the advice. :)
No Worries Eddy, Please keep me updated, if you like, on the outcome. I am sure to try my best to provide you with the best advice. =)
Hi Eagle, the Budget speech today gave banks a slight breath of relief today. With the $5.8 billion bank stimulus plan the government announced, together with the risk sharing in loans by the govt, I think it would ease some of the horrible credit risk banks feared these past months. I'm not sure how soon will it take before banks are willing to reestablish credit lines or readjust lending criteria. Having said that,how has your bank reacted to the announced plan so far Eagle?
On a side note, its the third day since my interview for the SME job, the interviewer hasn't called but I'm pretty sure she must have sense my jaw dropping apprehension when she mentioned $2000 nonperformance clause. But I think we'll see as we go along.
Hi Eddy, we welcome the plan and will focus on those customers who need credit lines and the ones offered by Spring Singapore are actually really low in terms of interest. So SMEs will benefit greatly from them because their costs will be kept to a minimum. It is good for them as they would definitely need low-cost loans right now. Of course, other products are still saleable but we have seen a slowdown lately.
Banks will usually re-adjust their credit criteria every now and then to stay in line with the economy and the risk situation.
As for your interview, dont worry too much about it. If it is meant for you, it will be yours. =)
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