Well organised orgy for successful sales staff

The news that Ergo, a division of Munich Re the world’s biggest insurance company for other insurance companies, took over a company that organised an orgy in 2007 to reward its most successful sales people may have shocked many people.

But you have to be impressed by the teutonic efficiency of it all.

The event was held at Gellert Baths in Budapest where 20 prostitutes were hired for the 100 participants. The women wore coloured armbands denoting their availability and whether they were hostesses, game for anything, or reserved for board members.

The men had to form an orderly queue of up to an hour to get into the 4-poster beds. After each interaction the prostitutes had their arm stamped. Not only could guests see at a glance which girls were more popular but the girls themselves could compare themselves with their peers and see which of them was performing better – instant feedback. The reports don’t say if the girls received any bonuses but truly this is performance management in the flesh.

On a personal note I have never been to Budapest but it’s on my list. But when I was last in Kaunas, Lithuania I noticed that Ergo had taken over the apartments where I lived for a month or so in 2008 so they are obviously doing well. Perhaps there is something in rewarding people at a very basic need level.

There was a sting in the tail for the participants who ended up paying €3,000 to the German tax authority for taking advantage of taxable perks. And the two executives who organised the event are no longer with the company.