As a huge sign of appreciation, staff at the Commonwealth Bank (ASX: CBA) were told yesterday that they would receive a $250 bonus to reward them for their industry-beating customer service, according to The Australian Financial Review.
CBA's chief executive, Ian Narev, issued an email to roughly 38,000 group staff members yesterday morning, alerting them that each would receive a $250 MasterCard gift voucher after the bank was recognized as having the best customer service out of the Big Four. Overseas workers and Bankwest staff members were not included in the bonus.
In recent weeks, the banks have all announced pleasing periodic results, with National Australia Bank (ASX: NAB) reporting a 23% gain in net profit compared to the previous corresponding period. Whilst such results can be largely attributed to heavy interest rate cuts by the central bank and the removal of bad debts, heavy cost-cutting has also boosted profits.
NAB, the ANZ (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC) have all cut a number of jobs and sent many more overseas to take advantage of lower employee costs. Whilst this may contribute to higher profits, many Australians have criticized these decisions, arguing that in a time where the banks are realizing such heavy profits, employees should not have to feel so uneasy about the future of their jobs.
Commonwealth Bank, on the other hand, has recognized the importance of keeping operations predominantly onshore, preferring to take a customer-oriented approach as opposed to cost-cutting, and therefore protecting the employment of Australians.
Narev stated in his email: "the leadership team and I greatly appreciate this unwavering focus on our customers and would like to say thank you", adding that the bank has "more satisfied customers than any other bank" as a result.
The bank today released its third quarter results, announcing a 12% increase in profit compared to the same period last year – reaffirming the company's dominance in recent times.
Foolish takeaway
Commonwealth Bank's focus on the fundamentals behind running a successful business is very pleasing to see. When staff members are shown such appreciation for their efforts, they are encouraged to continue providing high quality services to draw more and more customers in.
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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.
