Employee Reward Strategy for Heidelberg Insurance Services Assignment

Employee Reward Strategy for Heidelberg Insurance Services - Assignment Example In order to reduce the problems of lack of commitment, Poor quality performance and Lack of effective control, it is hereby recommended that the amount of times based salary in their monthly take home should be considerably reduced and a new system of commission based salary should be introduced. Commission should be directly proportionate to the volume of sales achieved by individual sales consultant. Also, the formula of higher the sales, the higher the percentage of commission should apply. Complete abandonment of fixed based salary is not recommended because it will reduce job security that may lead to high turnover. Also, if due to any reason i.e. illness, a sales consultant is not able to work for full number of days in a month; his/her commission income will sharply reduce. Thus, this fixed based salary will supplement that consultant's income in that particular month. Ultimately it will lead to enhanced commitment towards HIS. In an addition, to ensure effective checks and balances on the activities of sales consultants, amount of commission income should be made inversely proportionate to the number of complaints received against each of them. A Points System of Rewards i.e. ... Customer's feedback should also have strong impact on a sales consultant's pay package and quarterly/yearly bonus. To achieve this, customer satisfaction survey should be conducted after careful selection of sample. It will help in two ways. First of all it will make the customer feel that his/her feedback regarding the sales consultant's service to him is important to the company and thus it will develop a sense of attachment between him/her and the company. Secondly, it will help exercise effective control over the sales consultant. He/she will take great care at the time of making commitments - a problem that the company is facing and paying for by bad publicity by some unsatisfied customers. It is also highly recommended that the team of sales consultants should not be hired by one sales director only; they should be divided into 4 teams and each team headed by one team leader directly reporting to the sales director. It will be easy for team leaders and the sales director also to handle small groups of people that will help develop committed teams competing with each other in terms of sales and quality of output. Clerical Division Existing Payment System An organization's success depends not only on the performance of its sales team and / or of the senior management, the minor tasks performed by clerical staff are also important though relatively lesser than that of others. At Heidelberg, existing reward strategy does not reflects any thing that may motivate clerical staff to stay committed to the organization and to help achieve management's aim of reducing cost. Recommended Reward Strategy Since the job does not require a very high level of commitment, neither does