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Total Compensation Methods Paper

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    This paper is based on the salaries and the benefit administration strategies with reference to the organizational culture and the performance of the employees working in insurance companies.

    The organizational culture and the policies that are designed for the insurance companies is different from that of the other companies in various ways and so their compensation plans and  benefit administration strategies differ too. The beliefs and the values of the people working in an organization form up an organizational culture and this also has a great influence over the decisions that are made by the senior management (Admin Strategies, n.d.).

    Not just in the other companies but the people on the top positions in an insurance company can also greatly influence the climate of the company. Moreover, they can also lead the company to the path that they want the insurance company to go, therefore it is very essential for the insurance company is hire the employees especially for the top positions in a wise manner. Depending on whom the CEO or the people who are selected in the board of directors, the decisions of the insurance company are taken likewise. For instance, if the CEO is an entrepreneur, he would be more likely to take risks and to make changes in the organizations, he would also prefer to make fast decisions and likewise the salary and the benefit administration strategies will also be planned accordingly i.

    e. in order to motivate the employees, he would keep various incentives and rewards so that the employees work at their best (Carbondara, 2007).Normally the insurance companies tend to evade the risks but this is mainly subjected to various types of cultures that are developed in insurance companies. However, as the insurance companies tend to be the riskiest of all the other companies, it is important to have consistent rules and to be efficient in all ways.

    The pay scales of the employees working at insurance companies depend on the designation of the employee i.e. the employees working at higher posts get paid highly and they get more benefits as they are entitled to more benefits than the others as they hold important positions in the company. The other employees however, get paid in a likely manner with accordance to their post.

    For instance, in an insurance company, from some of the posts such as the claims manager, underwriter, claims adjuster (examiner or investigator), insurance claims representative, insurance claims adjuster, insurance sales agent and lastly, the customer service representative, claims manager gets the highest salary followed by the reduction of the salary given to the employees working for these posts in a descending order (Pay Scale, 2009).The salaries and the benefit administration strategies of an insurance company not just helps to attract new employees but it also assists the company in retaining the employees. Furthermore, this also helps the insurance companies to progress further so it is important to plan an employee benefits program and also to align the business plan of the insurance company. However, other than the basic salary, the employees also expect yearly bonuses and other such benefits that should be given to them in order to help them keep motivated and work in an effective manner especially for the who are assigned to bring in more clients.

    The success of the organization depends on the number of clients it acquires as well as the number of clients it retains in a year and so the officers who have had helped the insurance company acquire new clients should be rewarded. For this purpose, the insurance companies provide bonuses for the employees but this policy differs in various insurance companies. For instance, in some companies, the officers are delegated to make a minimum number of clients before they are entitled to the bonus while in other companies, the employees get rewarded on the basis of every new client they help the company acquire.However, with the growing needs of the society, insurance companies have come up with various types of insurance packages for the customers and as every customer has their own unique need, everyone might not opt for the same basic insurance package.

    This is mainly because of the diversity that is existing in the world today and the increase in competition with the other insurance companies that has forced the insurance companies to revise their insurance plans and to come up with new schemes. Likewise, there is also much competition between the insurance companies and every individual wants to work for an insurance company that is successful and the one that pays well. Therefore, the human resource departments in the insurance companies have now come up with much other salary and benefit related plans and strategies that can help motivate the employees to work well for the company. Besides the basic salary and the bonus already mentioned above, the employees are also provided with company’s transport and various insurance policies are especially designed only for the benefit of the employees serving the insurance company.

    Likewise the employees also get rewarded in various situations such as when they have a perfect attendance, have performed exceptionally well or have achieved some goal.The benefits administration strategies also includes eligibility management as this helps the insurance company work out that which employee should get what types of rewards and the amount of salary they should get. Moreover, it also monitors the payments that are made to the employees and when the posts of the employees change, it is their duty to update the salaries and the benefit administration strategies designed for the post the employee has been promoted to. However, the salary and the benefits an employee gets in an insurance company greatly depends on some factors i.

    e. the size of the insurance company, its location, the job of an employee, his previous experience or the experience at his job and some other factors are the educational details of the employee, the college from where he has passed his degree and the job description, etc.It is obvious that the culture in the insurance companies influences the success as well as the economic performance of the company; therefore, it is essential for the management of the insurance companies to create a positive culture (Mayers, Shivdasani, Smith, 1997).ReferenceAdmin Strategies.

    (n.d.). Benefits management.

    Retrieved on   August 2nd, 2009 from:             http://www.adminstrategies.com/benefits_eligibility.htmCarbondara, P.

    (2007). Hire for Attitude, Train for Skill. Retrieved on August 2nd, 2009from:             http://www.fastcompany.

    com/magazine/04/hiring.htmlPay Scale. (2009). Salary chart.

    Retrieved on August 2nd, 2009 from:             thttp://www.payscale.com/research/US/Industry=Insurance/SalaryMayers, D., Shivdasani, A.

    , Smith, C.W. (1997). Board Composition and Corporate Control: Evidence from the Insurance Industry.

    The University of Chicago Press.Retrieved on August 2, 2009from: http://www.jstor.org/pss/2353480

    Total Compensation Methods Paper. (2017, Mar 07). Retrieved from https://graduateway.com/total-compensation-methods-paper/

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