*BREAKING NEWS: Blue Cross Blue Shield of North Dakota Cancels Incentive Trips March 06, 2009 Cites "appropriateness" as a concern
By Alex Palmer
Blue Cross Blue Shield of North Dakota (BCBSND) has announced that it will no longer offer incentive trips as part of the compensation package for employees in its marketing division. In a statement released yesterday, the company's CEO indicated that the decision to cancel the trips, which have been used to reward sales representatives for the past 18 years, was due to concerns about how the trips would be perceived during these challenging times.
"Our sales representatives earned this incentive as part of their compensation and sales achievement; however, given the current economic conditions, we should have more adamantly questioned the appropriateness of this trip," says BCBSND President and CEO Mike Unhjem. "We have decided to no longer offer incentive trips as part of our sales force compensation package and will continue to evaluate and effectively administer all expenses."
The decision came after a public outcry over a reward trip for 35 employees plus guests to the Grand Cayman Islands this week. The company says the trip was earned by employees in 2008 and booked in 2007, and BCBSND spokeswoman Denise Kolpack explains that this trip is calculated as part of these employees' regular compensation.
"It's a reward trip…they pay taxes. It's considered part of their salary," Kolpack said, according to The Forum of Fargo-Moorhead.
In his statement, Unhjem goes on:
"To attract and retain assertive professionals, the company offers a competitive salary package. To qualify for the incentive trip, sales representatives and support staff must achieve specific sales goals during a calendar year. Historically, the BCBSND sales force has been successful selling contracts and expanding the insured pool, which helps distribute risk."
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