Posted by
Stephanie Bruno
on
7/29/2009 at 1:03 PM
The current economic severity continues to be a challenge to all. Analysts across industries are coming up with their own assessments, from The New Normal, to those who predict an upturn any day now. Whether it’s an adjustment to a new order or to cope with a passing phase, companies are certainly restructuring their processes and many organizations have begun to realize the value in restructuring their compensation models to start with.
Along with the economy, emotions are also turbulent amongst stockholders, employers and employees alike. Growth and stability initiatives rest on their shoulders, and the pressure to set companies on the right path to recovery creates an enormous stress on executives and employees alike. The margin of error for each individual is almost non-existent. Hence, they need to place themselves in the best possible position to make ever increasing and well-thought out critical decisions.
Weathering the stress effectively calls for high Emotional Intelligence (EI) levels. Talented workers with the right mix of industry skills and EI are always sought after and highly prized. As emotionally content employees are better equipped to deal with high stress and tight deadlines in day-to-day activities, they always are and will be in constant demand in the competitive market. Therefore, it is critical not only to motivate employees but also to ensure their emotional contentment through flexible incentive compensation planning.
With changes in industry trends and employees’ needs the value of seamless, accurate, compensation management goes a long way in aligning employees to the organization’s overall goals. This becomes an inspirational vehicle to maintain the right emotional balance among employees and reach company’s objectives. This, in turn, ensures a satisfied group of employers and stockholders.
Channelizing the compensation system into the process is being favorably considered as the crux to effectively increase employee performance in economically bleak times as this excerpt from a survey by Deloitte Consulting LLP indicates:
“Nearly a third said they were considering additional programs to keep key employees -- often special payments to supplement regular bonus pools.”
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Posted by
Stephen Bruno
on
7/22/2009 at 7:05 AM
With challenges such as difficulty in recruiting qualified representatives, retaining agent mindshare and aggressive competition for talent in the insurance market, insurance organizations of all types must turn their attention to establishing better processes and controls on the management of their sales channel.
A successful Sales Performance Management (SPM) solution provides insurance organizations the sophisticated tools that manage incentives, territories, and quotas to influence the performance of the sales force. Along with flexible commission plans, agent licensing data and performance data to drive sales channel behavior, effective communication between the channels plays a key role to maximize sales performance.
Historically, communication among producers is incomplete at best. Many organizations rely on highly inefficient means of providing time-critical marketing materials, incentive plan changes and bonus information. But with SPM, organizations can instantly synchronize information between sales and marketing teams, which greatly enhances their follow-up time with customers.
Communication of product rollouts, new commission plans, bonuses, educational opportunities and more can be shared with producers in real-time for improved visibility of the systems in place across the entire organization. This technology not only ensures that new incentive plans and bonus programs go into effect quickly but also improves retention rates.
SPM allows frequent and effective communication with agents, as well as two-way feedback. With round-the-clock insight into each step of the sales process and for agents a view into how their performance will affect their pay; producers are empowered to take control of their paychecks and are driven to perform in order to succeed.
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Posted by
Stephanie Bruno
on
7/15/2009 at 2:00 PM
Is it time for insurers to consider innovative plans to cover fatal vehicular tragedies during certain days of the year?
As I scanned through this article on Forbes.com about the most dangerous holidays for drivers, I immediately began to consider the insurance implications. Undoubtedly, these days are factored in to an insurer’s risk and premium figures, but I wonder if it’s time to be innovative with the way insurers handle coverage and claims around these days.
A hallmark of most American holidays is an increased amount of drinking, which translates to more intoxicated drivers and therefore more dangerous driving conditions. For that reason, New Years Eve would be expected to be the leader amongst accident fatalities. But according to research by the National Highway Traffic Safety Administration (NHTSA) the most dubious culprit is actually Thanksgiving. Experts say the combination of celebrations involving drinking combined with heavy long-weekend traffic is the factor driving the numbers up.
An excerpt from the article with the average stats:
Thanksgiving is the day when heavy traffic, drinking and long-distance car trips combine to create fatal travel conditions.
The 5 Most Dangerous Holidays for Drivers
No. 1 Thanksgiving
Average Vehicular Deaths: 573
No. 2 Independence Day
Average Vehicular Deaths: 505
No. 3 Memorial Day Weekend
Average Vehicular Deaths: 493
No. 4 Labor Day Weekend
Average Vehicular Deaths: 488
No. 5 New Year's Eve/Day
Average Vehicular Deaths: 421
This reliable trend may just be a prospective source to design new insurance products. Carriers may come up with new insurance policies that give extra coverage for accidents occurring on those specific days - with the appropriate premiums, of course. They may even plan to provide incentives for policy holders not to drive on those particular days. Whichever way they look to implement, this trend could drive insurers to take an innovative approach in their policy making.
With the nation’s attention on change in the insurance industry, we expect carriers to use innovation to capture the larger interest of customers. Perhaps it may not take long to see policies like these coming into effect.
To the auto and health insurers reading this, I encourage you to contribute your thoughts on this issue! How do you handle this issue currently, and is the prospect for change anywhere on the horizon?
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Posted by
Stephen Bruno
on
7/1/2009 at 8:37 AM
Compensation difficulties are evident across insurance segments. Many health carriers are suffering due to compensation calculation systems based solely on paying commissions as a percentage of premiums. Many life insurance carriers struggle to motivate agents due to a method of paying a single commission for a single policy, missing opportunities for bonuses based on retention. These challenges are fundamentally caused by the inability of custom developed systems or antiquated technology to calculate commissions and bonuses based on a variety of selectable criteria.
This inflexibility in commission calculation not only fails to appropriately incentivize agents but also impacts the company’s bottom line through missed opportunities for increased business, agent retention and customer retention.
To leverage commissions to their advantage, carriers must have the flexibility to transition to different compensation structures while mitigating the risks of disrupting distribution channels. A solution that provides this capability in a single, proven technology package is Incentive Compensation Management (ICM).
With ICM, insurance organizations are equipped with strategic tools for aligning the channel and streamlining operations—including the flexibility, agility and analytics capabilities so critical for competing in today’s changing markets. By removing the obstacles that prevent carriers from succeeding, the solution empowers them to align agents with company goals, provide accurate payments and detailed commission statements, and convenient online communication that helps preserve agent loyalty.
Utilizing the services of the right technology solution gives insurance companies the fire power they need in their processes to execute on dramatic changes that contribute to cost reduction and revenue growth.
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