Crime Essay

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TITLE: TO STUDY THE COMPENSATION BENCHMARKING IN SALES DIVISION OF DIFFERENT LIFE INSURANCE COMPANIES. INTRODUCTION: Compensation lies at the heart of human resource practices. How employees are paid can affect a life insurance company’s ability to attract, retain and recruit employees and can be a strong motivator in terms of performance. Bonuses, shift-differentials, uniform and allowances all might influence an applicant’s decision to work for an agency; they might also influence an employee’s decision to stay. While some programs might be necessary just to remain competitive, others might attract top talent. Other programs, such as pay for performance, broad banding and gain sharing, may provide flexibility and incentives to achieve cost savings or customer service goals. It’s not enough just to have a well designed system, it must be implemented properly or workers will feel they are being treated unfairly thereby undermining the program’s goal. ➢ More than three-quarters of all life insurance company have a defined pay philosophy ➢ Most life insurance company use the traditional grade and step systems although a significant number are using other systems ➢ Three quarters of respondents offer uniform allowances ➢ Hiring bonuses are more common at the federal level than at the city or county level ➢ Less than half of respondents use variable pay ➢ Of those that do, pay for performance is the most common ➢ There is a strong correlation between funding levels and the perceived success of the variable pay program ➢ Fifteen percent of life insurance company utilize broad banding ➢ Thirteen respondents have a gain sharing program in place. In the past three to five years, variable pay approaches have exploded in popularity among Life Insurance Company. Performance evaluation systems, for example, have been

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