* Financial Rewards at MetLife Alico * Presented by : * * Outline I. Introduction
Overview of the Insurance Industry
Company Profile I. Motivation General Overview Financial Rewards II. Financial Rewards at MetLife Alico III. Analysis of findings IV. Conclusions and Recommendations V. Appendix I- Introduction * Introduction
The Insurance Industry in Lebanon * Open & liberal market * 60 insurance companies * Top 10 companies account for 60% of total premiums * Gross premiums per operating company have improved between 1997 and 2002 * Introduction * Life insurance sector is very developed relative to other Arab countries * Top 5 insurance companies: 1. - Arope Insurance 2. - Mednet Liban 3. - Libano- Suisse 4. - MedGulf 5. - MetLife Alico * Introduction Alico’s Profile: * American Life Insurance Company (Alico) is one of the largest leading insurance companies in the world * 1921: Established in Shanghai – China * 1960’s: Moved to Wilmmengtion- Delaware * 1980`s: Operating in Latin America , Middle East and Europe * Aim: “for market leadership and profitable growth, employing local talent and empowering individuals to perform at very high levels.” * Introduction
Alico in Lebanon : * Leading life insurance company since 1953 * Main office in Verdun, Beirut * 400 agents * 21 Sale`s branches * 100,000 customers * Introduction * Comprehensive list for individuals and businesses offering : -Life insurance -Retirement planning -Accident, health & Travel Insurance -Group life -Medical Plans -Credit Life Insurance * Introduction * Mission: to help its customers financially secure their future * Feasible policies for all income brackets * Dealing directly with the regional branch in Sharka, UAE. * Part of Alico Measa Group * Home office still in Delaware, USA * Introduction
II- Motivation * Motivation * Motivation is the forces with in a person that affect his/her direction, intensity, and persistence of voluntary behavior. * One of the 4 direct drivers of the MARS model. * Motivation
Intrinsic Motivation: job itself
Extrinsic Motivation: outside forces
Incentive Theory of Motivation :
Employees are motivated by being awarded tangible and intangible rewards as a result of their performance. * Motivation: Financial Rewards * Companies use financial rewards to extrinsically motivate employees in order to achieve overall goal of the organization. * Motivation: Financial Rewards
Types of Financial Rewards: 1. Membership/ Seniority Based Rewards 2. Job Status Based Rewards 3. Competency Based Rewards 4. Performance Based Rewards a)Individual rewards: bonus/commission, piece rates b)Team rewards: bonuses, gain sharing c)Organizational rewards: profit sharing, share ownership, stock options, balanced scorecard * Motivation: Financial Rewards III- Financial Rewards at MetLife Alico * Financial Rewards at MetLife Alico * 2 types of workers: employees vs. agents * Incentive Theory of Motivation is highly followed * Motivational techniques used: * Financial motivation * Threat of Punishment * Praise recognition * Contests with travel prizes & rewards * Financial Rewards at MetLife Alico Financial Reward Techniques used: (for employees) * Employees receive 1 month bonus salary at a potential increase in rate of pay , yearly depending on their performance. * Bonus is usually paid quarterly. * Seniority awards in the form of money are given to employees every 5 years. * Ease of loans at low interest rates * Class A medical benefits & pension benefits * Financial Rewards at MetLife Alico
Financial Reward Techniques used: (for agents) * Sales agents get paid on commission basis, depending on number and types of policies sold/renewed, no fixed wage. * Benefits are also attainable if they reach certain targets * Financial Rewards at MetLife Alico * Merit Rating is used for employees above supervisory level * Balanced scorecard is used for this job evaluation * Organizational Rewards in the forms of ESOPs, profit sharing, and stock options, are NOT practiced IV- Analysis of Findings * Analysis of Findings * Seniority awards, Medical & Pension benefit, and the ease of loans all reduce turn over rate * Reduce turnover Reduce costs of training new comers * May fail to motivate new comers to perform better & short-term employees can be discouraged * Analysis of Findings
Bonuses:
* Promote effective team work & reduce sickness/absenteeism * Encourage better performance * Better work= Higher Bonuses * Create competition between employees. * Analysis of Findings
Commissions:
* Motivate salespersons to make really good money. * Payroll costs are related to the value of business achieved (not just the amount produced) * Disadvantage: * Sales people may cut corners to make sales. * Once payments are made, the sales force may lose some motivation until the next payment. * Analysis of Findings In Summary : * Incentives are motivating the employees & agents a lot. * The company stresses on the importance of extrinsic needs to motivate the employees. * HR at MetLife Alico is always open to new motivation techniques. * Strongly belief in the Incentive Theory of Motivation. * V- Recommendations * Recommendations * Recommendations * Recommendations * Links rewards to performance * Reward systems also need to correct for situational factors * Use team rewards for interdependent jobs * Ensure that Rewards are valued * Watch out for unintended consequences * Motivate employees intrinsically * Recommendations * Other Recommendations : - Employee of the Month, Quarter or end of Year. * Service Awards: Based on years of service and often come in the form of Label Pins, potentially progressing to a larger award after 20-25 years * Banquets and award ceremonies to highlight employee's success.
- Movie, Event and Venue Tickets.
- Gift Baskets, etc….