Part 269: Priorities, Incentives, and Cutting Costs

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss incentives and priorities at work.  Also, a look back at lifetime contributions to my ISA and pensions.  There are some frustrating updates on the job front for our household and a few thoughts on Christmas.

Weekly Update

A Very Covid Christmas

I think I’ve had Covid this week, which has sucked.  I’ve been coughing through the day and then waking myself up coughing.  As a result of feeling rough, I’ve not done much over the past week but I do have a few things I want to get off my chest.

Our broadband package is due to expire in January.  We are with Hyperoptic who specialise in full fibre broadband in apartment complexes.  Their speeds are great and we typically get 700mbs on wi-fi with upload and download speeds the same.  It’s a good service.  We have been paying £30 per month on a 24-month deal.  The renewal option was to either pay £63 per month on a rolling contract, or £40 per month.  I don’t think a 35% increase is justifiable.  

The thing about data is that it’s not a finite resource.  We can’t run out of internet.  Once the infrastructure is in place, it’s a case of maintenance, repair, and supervision.  Every time the contract is up for renewal we go through the same song and dance, and it’s bullshit.  After several calls and emails, I got them to agree to a lower price.  I just find this whole performance unnecessary.  If the business offered people their “best price” at the outset, they wouldn’t have to spend as much money hiring staff to haggle with frustrated customers.

Anyway, I got a slightly lower price and it’s sorted for the next two years.  Except for their renewal process, I find Hyperoptic pretty good.  Their service is stable, and their tech support is generally helpful as well.  I could just do without the nonsense that comes with renewing my deal.

On the subject of bullshit, I have something to discuss which infuriated me this week.

More Job Nonsense

I have mentioned previously that Oana is due to start a new job in January with Aviva.  I used to work for Aviva, almost twenty years ago, and I had a great experience.  Oana has not.  I think it’s necessary to give a little context here.  Oana’s full name is Oana Scothern.  We are not married, but a  few months ago she changed her first and last name.  Before this, it was Ioana Sache.  All of her previous employments have been under Ioana Sache.

Oana has been going through the vetting and referencing process for the Aviva job, and they have been using a third party, Reed, to complete this task.  Here is, in bullet point form, the utter ridiculousness of what has transpired.

This is how it went down…

Oana: *completes the referencing questionnaire, providing details of previous employment and her name change history.  Also provided, an address history covering the last five years (we have lived in our apartment for over 12 years now).*

Reed: Have you changed your address in the last five years?

Oana: As per the information provided, no.  I’ve been living here for over 12 years.

Reed: We need your employment history.

Oana: I’ve provided it already.

Reed: We need your HMRC employment record.

Oana: *provides record*

Reed: There’s an employment here you didn’t disclose.

Oana: *panics then realises* Oh, sorry that was a genuine error on my part.  That was fifteen hours of work across three days for a business around the corner.  I’d honestly forgotten about it.

Reed: We need reference details for that job.

Oana: Ok, here you go.

Reed: They don’t have any record of Oana Scothern working for them.

Oana: *exasperated as she’s already told them about her change of name earlier in the process*

Reed: We need your HMRC employment record.

Oana: You already have it.  That record is what highlighted this job we’re now discussing. 

After a few days of radio silence, Oana receives a phone call from Aviva withdrawing their job offer because of a “third party reference” but they would not provide any further detail.

It gets worse…

Whilst all this was happening, the Aviva HR team was not covering themselves in glory either.  They sent a contract to Oana with incorrect information on it, and when it came to talking about DSE requirements the whole thing went from frustrating to absurd.  

Oana was due to have a call to discuss any DSE requirements but this was put back and ended up being scheduled for the day after Aviva withdrew their offer.  Oana and I joked that Aviva would probably still end up calling, and we were correct.  A day after withdrawing their offer, they called her to discuss her DSE requirements.  

We understand that the missing job was an issue, but it was three partial days of work to help a local business with some admin.  They offered Oana a permanent job but she turned it down.  It’s not like she had withheld information about a long-term job.  It was a genuine mistake.  On the other hand, the vetting process was ridiculous, with them asking for the same information over and over again.  I think this is a bullet dodged, but it’s back to the drawing board for Oana.

My job search…

I formally turned down the job I was offered.  It all boils down to the training.  It would be several days in which I’ll be away from home for at least 14 hours each day, and that’s just not possible right now.  I’m very reluctant to spread myself too thin.  

With Christmas and the New Year approaching I don’t think anything of note will happen with our job search until 2025.  This is my first time seriously looking for a new job in over a decade and I’m astounded by the incompetence on display and it all seems to stem from a lack of continuity and work ownership. 

The company that I just turned down was the opposite, with one person acting as a point of contact with me. This meant the process was consistent and I did not have to repeat myself.

Cutting Costs

I’ve never understood the constant drive to cut costs from businesses with no regard to context.  It’s like many of the big department stores that cut staff numbers to reduce costs. It reduced the wage bill, but then there was no one to take money from customers.  I lost count of how many times I went to John Lewis, or Debenhams, and walked out because there were no staff to assist.  If you want to sell to people, you have to have the means to sell.  

Contracting off-shore…

I’ve seen this with many previous employers that have contracted out their back office work to countries with lower wages.  Generally, because of language barriers and cultural differences, mistakes are made or explanations have to be provided for things that would normally be obvious.  For example…

Most people above a certain age in the UK would understand what the entry “profit share” on a payslip means.  However, having to explain this to someone halfway around the world who is not working in their first language is always going to be difficult and time-consuming, in the same way that I would struggle to understand some terms translated from Thai, or Japanese, for example.  The business might be paying less money out on wages, but is the saving a saving when you factor in duplicated work, mistakes, and the impact on the customer of delays and poor service in general?  It’s damaging to the brand.  

I don’t think I’m asking for much when I expect people, and businesses, to get simple things right most of the time.  Yes, mistakes are made from time to time, but it seems to be the rule rather than the exception now.

Christmas

As this is the last post before Christmas I figured it was the right time to share my opinion on it.  Christmas is annoying.  There are things I like about this time of year, such as good food, good company, spending time with loved ones, and so on.  None of these things are exclusive to Christmas though; they can be done at any time.  What’s annoying is the commercialisation of Christmas and the societal pressure to experience Christmas in a certain way.  Although it’s not as bad as it was when I was younger, it still seems to confuse some people that we don’t drink alcohol, or enjoy things like mince pies or Christmas pudding.  

Another part of Christmas that I find insufferable is the music.  Many of the “traditional” songs are, in my opinion, utter trash. Yet people seem doggedly determined to perform the usual Christmas rituals, and in that spirit, I’ll list the twelve points that frustrate me the most.

Excessive Drinking

Christmas parties and family gatherings often turn into an excuse for excessive drinking. Festive cheer can quickly spiral into awkward confrontations or regrettable moments.  I’m not generally a fan of alcohol.  I’ve had it before and enjoyed it, but all too often people get carried away and don’t know when to stop.  It feels as though Christmas is just an excuse for people to get wasted, which leads to arguments and bad decision-making.

Overspending

People feel pressured to buy extravagant gifts, often racking up debt just to meet societal or familial expectations. January’s credit card bill brings more stress than joy, and these financial pressures can last until the following Christmas when the cycle repeats itself.  

Forced Family Gatherings

Obligatory get-togethers with relatives you see once a year can feel more like a chore than a celebration. These gatherings often lead to tension and arguments.  Just because someone shares a family name or other relation, it doesn’t obligate them to anything.  Family is about relationships and how people value and respect each other.  It’s not simply genetics.  

Overeating

Christmas indulgence frequently turns into an outright binge, leaving people feeling bloated, uncomfortable, and guilty about their health choices.  I’m not talking about people who eat a little more or treat themselves to a few luxuries.  I’m talking about over-the-top binges which go beyond enjoyment. The mental toll of excessive consumption, and the physical effects it has on weight, blood sugar, and digestion are not good.

Awkward Secret Santa Exchanges

Participating in Secret Santa at work or with distant family often results in either cheap, pointless gifts or stressful guesswork about what someone might like.  I remember witnessing a particularly awkward Secret Santa when one guy got the wrong idea and bought a female colleague an inappropriate gift.  The forced participation aspect can feel, well, forced as well.  I’ve been lucky enough to work in some great teams in the last few years with colleagues I’ve liked and respected.  Buying a gift for them is fine, and I’m happy to take part.  When you find yourself in a team that is not so positive, it’s hard to say no without making yourself seem like an asshole.

Tacky Decorations

From overly bright inflatable lawn Santas to garish flashing lights, some decorations feel more like a contest for attention than a celebration of the season.  Creative and amusing decorations can be fun, but spending money on cheap plastic rubbish is harmful to the environment, and a waste of resources.

Office Party Faux Pas

The annual Christmas office party is fertile ground for embarrassing moments, like bad karaoke, awkward flirting, or saying something you regret to your boss.  I could tell a few stories from my past but as this is not an anonymous blog I think I’ll keep those secrets.  Much like the warning police give when arresting someone, anything you say at these parties can, and will, be used against you in the court of public opinion. 

Rushed, Obligatory Charity

Christmas sparks a wave of “guilt giving,” where people donate or volunteer for the season but fail to engage with causes consistently throughout the year.  Don’t get me wrong, I’m all for charitable giving but not all charities are as altruistic as you’d think.

Overhyped Commercials

Every year, companies spend millions on emotional Christmas adverts designed to guilt consumers into spending even more. These ads often feel more manipulative than normal.  Some adverts, like the John Lewis Christmas one, have become events in their own right.  It’s all bullshit, and I’d be more likely to shop with them if they released an ad on a simple background stating they’ve donated a few million to a good charity instead of spending on a flashy ad.  They could even do some sort of donation matching thing, where each £1 spent on certain ranges results in a donation to a specific charity.  

Unwanted Gifts

The exchange of gifts often leads to receiving items you don’t need or like, creating unnecessary waste or the hassle of returns.  I’ve not done a deep dive on this, but a quick search suggests over £40m of Christmas gifts end up in landfills shortly after the holiday season.

Rigid Traditions

Some families insist on sticking to old traditions, even when they no longer bring joy, simply because “it’s what we’ve always done.”  Just because it’s been done a certain way since Jesus played full-back for Jerusalem F.C. it doesn’t mean it’s still the right, or appropriate, thing to do. 

Last-Minute Frenzy

The last-minute rush to buy gifts, prepare meals, or finish work before the holidays creates unnecessary stress and detracts from the festive spirit.  A typical retail worker will probably work one of, if not both, Christmas Eve and Boxing Day; two of the busiest shopping days of the year.  They then have to put on a brave face of enjoying the day sandwiched in between.  

Our Christmas

Our Christmas is going to be very laid back.  We’re having a curry on Christmas Day for which we can do most of the prep the day before.  We’ll leave some chicken marinating, and make a fresh salad with a lime dressing on the day.  The meal will be served with some rice, and Indian spiced roasted cauliflower.  A nice, simple, tasty meal.  

We will be joined by my Dad on the 25th, and again on the 26th with my Mom also popping over.  

Oana and I have developed our own Christmas traditions which include watching the movie Four Lions, which we can probably quote every single line from memory, and watching the Lord of the Rings trilogy (extended editions, obviously).

Whatever you choose to do, I hope you have a great time.

Christmas for Autistic People

Christmas can be very challenging for autistic people to navigate as it involves many things that are difficult for us to deal with, such as;

Disruption to routine.

Socialising with unfamiliar people.

Different food and drink.

Loud music and conversation.

Invasion of personal space through hugs, kisses, etc.

An expectation to take part in group activities.

Sensory overload with flashing lights, bangs from balloons and crackers, competing noises and smells, and different tasting food and drink.

The chances are that everyone reading this post has someone in their social circle who is neurodivergent.  Christmas is supposed to be a time for everyone to relax and enjoy themselves, but what this looks like can be very different from one person to another.  Think about the people in your life, and try to remember they will all have different tolerances, preferences, and limits for what they can handle.  Just try to accept that if someone doesn’t want to eat a specific food, or take part in a specific activity, that’s their choice.  Making a big deal out of it does not benefit anyone.

Letters to Oana

Part 2 of the series Letters to Oana is now live, and Part 3 is in progress.  

Looking Back

Parts 18, 19, 20, and 21 of the Looking Back series are also live.

What I’m Doing

Listening: Algorithms to Live By: The Computer Science of Human Decisions by Brian Christian and Tom Griffiths.

Watching: Star Trek: Deep Space Nine.

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,000.00.

Stocks and Shares ISA: £89,017.51.

Fuck It Fund: £9,036.79.

Pensions: £89,516.80.

Residential Property Value: £237,447.00. 

Total Assets: £455,018.10.

Debts

Residential Mortgage: £184,783.09. 

Total Debts: £184,783.09.

Total Wealth: £270,235.01.

I had my final pay from my old employer, including the package to end my employment.  Some of that money was put to use in our apartment and to pay towards upcoming holidays.  I also lent someone a couple of grand, but I know where they live and I know they’ll pay me back.  I’ve put some in my pension, yet the market seems to have dropped which has wiped away that value.  I’ve also topped up my Premium Bonds and Fuck It Fund.  When the new tax year starts I’ll be able to invest in my ISA again.  All in all, I’m left with a few thousand that I’ve not spent or invested yet.  I’m in no immediate rush, and with Oana and I not working, it’s probably wise to keep some funds in reserve.

Peak Wealth

In Week 247 my Total Wealth figure stood at £281,315.04, which is the highest it’s been since I started this whole thing.  From that point, I had to cash in some investments, and I also sold the BTL property.  In recent weeks my wealth has been increasing again and I’m not that far away from hitting a new high.  It’s exciting times and I’m just willing the figure to break through £300,000.  It’s all psychological, I know.  However, there’s a nice buzz that comes from going up a digit.  

Lifetime investment contributions

I was chatting to a friend who is also following a FI plan, and they had worked out how much they’d invested into their ISA and pensions to see what growth they’d had over the lifetime of their investments.   So, I did the same.  It was interesting to discover that I’ve invested a total of £57,998.38 into my pension, and with the current value of £89,516.80, I’ve experienced growth of over 50%.  

For my ISA I’ve invested a total of £98,300 and the current value is £89,017.51.  It’s important to note these figures do not include the amounts I’ve withdrawn from the ISA along the way, which total: £28,186.32.  So, the true growth is from £98,300 to £117,203.83; an increase of 19.2%.  

The ISA figures are disappointing but not surprising.  For the first couple of years of investing, before I got serious and started this blog, my approach was unfocused and ill-advised.  I’m confident the rate of growth will look much better over the next few years.  The growth of my ISA has also made me reflect on whether I should stick with my current provider, or switch one with lower fees.  I like the interface and app with my account now, but I need to decide if it’s worth the difference in fees.

Incentives and Priorities

If you make everything a priority, then nothing is a priority.  This is something I’ve come up against in several jobs, as so many employers are reactive rather than proactive.  Focus changes from one thing to another at the drop of a hat, meaning that employees are left none the wiser as to what the actual priority should be.  It’s worse when different areas of the same business argue for priorities that contradict each other.  

Both Sam Altman and Steve Jobs have cautioned that employers need to be very careful with the incentives they offer.  If you promote a target, priority, or expectation, you might not get the behaviour you were hoping for.  Let me give an example…

You are working in a call centre and you are told that the priority is to minimise the time you are not on a call or available to take a call.  Essentially, you need to minimise your “wrap time”.  The behaviour that the company would like to encourage is the quick, efficient, wrapping up of the after-call work, such as notes, emails, and so on.  This is not what happens.  

Behaviours and expectations…

When a call centre sets this kind of target, call times get longer because staff learn to do their after-call work with the customer on the phone, meaning that their wrap time becomes shorter.  It’s utter nonsense and it’s easy to see why.

Assume you were on a call for twenty minutes, and it would normally result in ten minutes of work following the call.  That’s thirty minutes total in which you are not available to take another call as you can only speak to one person at a time.  If you prioritise reducing after-call work times, then the employee will keep the customer on the call for longer while they complete their notes, emails, and so on.  The result; a thirty-minute call, followed by a few minutes of wrap time.  In the second instance, the wrap time is lower but the expected impact is not produced.  Rather than that colleague being tied up for just thirty minutes, they may be tied up for forty minutes; thirty on the call and ten minutes after, for which they pat themselves on the back for halving their wrap time.

Employees are not generally stupid people.  They are often treated badly, demotivated, and sick of dealing with crap from higher management, like targets that make no sense.

Another example…

Let’s take another example, this time selling insurance.  There are three phases to this; discussion, quote, and sale, and it’s easier to think of these three phases as filters. 

In the first instance, you would expect to discuss it with 100% of your customers.  It’s unrealistic to expect 100% of your customers to need insurance, and it’s not appropriate to sell something to a person who doesn’t need it.  After all, you would not sell building insurance to someone who had a block policy for an apartment.  So, this is your first filter.  If you accept the fact that not everyone needs insurance, then it stands to reason that some people will drop off at this first filter once you’ve discussed it with them.

Moving on to the second filter, you will have some people that are interested in getting a quote, and some people who will refuse for whatever reason. Forcing people to get a quote for insurance on a product they are purchasing is pointless, and wrong.  If they aren’t interested then no one is benefiting from the discussion.  The customer isn’t, and you are reducing your credibility in their eyes.  It’s damaging to the brand. 

Texas Sharpshooter

But say you force them to have a quote to bump up the figures so that you can proudly proclaim you quoted 80% of the customers you spoke with; so what? Has that; generated any business? Improved the image of the company? Or improved the reputation of the employee?  Has it improved the feelings of the colleague to their employer?  It’s just the Texas Sharpshooter all over again.  You shoot a load of holes in a wall, then draw your bullseye around each one.  Your accuracy figures will look fantastic.  

If you are trying to avoid a sales target by incentivising the prior step, it’s not going to work.  Workers always find a way.

“I choose a lazy person to do a hard job. Because a lazy person will find an easy way to do it.”

– Bill Gates

Sales

This brings us to sales.  If a business has set an expectation that their staff should quote as many people as possible, but also sell as much as possible, then the two are at odds.  If you insist on quoting a customer who isn’t interested in the product, that is time wasted that could have been spent quoting an interested customer who might actually buy.   

10 sales from 15 quotes is the same money generated as the same 10 sales from 30 quotes.  Which is more efficient though?  Which generates more income per unit of time worked?

Busy work is the worst kind of work.  No one benefits.  

That’s me done for this post, and thank you, as always, for reading.  I hope you have a great Christmas.  Check back next week for my year in review and look ahead to 2025.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my former, current, or future employers, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.