Instructions
BUSINESS CASE Laura Jones runs a small Insurance office in Raleigh NC with 24 employees and wants to grow revenue by 30% over the next three years. Her firm’s turnover is currently 30% within the first 3 months. In her company there are two other managers, as well as 17 full-time agents and five administrative positions. At this time, she pays her agents $35,000 – $40,000 per year in base salary with a 10% base salary bonus if they achieve their sales goals (no bonus is made if goals are not met). The only benefits provided are seven paid holidays, seven paid vacation days and five sick days per year. The Insurance industry has notoriously high turnover, but Laura is determined to improve the odds of success. Laura believes that she also has to adjust her compensation package as some of the more successful agents are leaving to earn more money. She believes that having a total rewards strategy would help her to retain talent and increase revenue, but she’s just not sure where to focus her strategy: on base pay, incentive pay or benefits. In other words, where should she invest her money towards her staff to have the greatest opportunity to improve staff turnover and drive sales growth? Laura has engaged your team’s HR expertise to outline an orientation and retention plan as well as a total rewards strategy, pay program and benefits program designed to help attract the recruiting (sales) team talent she needs to bring in the revenue growth, while also reducing turnover for both long standing employees and newer ones who are quitting very early in their tenure. Outcomes expected: Develop a Total Rewards System to address some of the systemic problems she is facing. Where should her firm focus its investment to get the most bang for her buck? As for pay, how should she adjust pay for each of the positions to align with her strategy of sales growth and Total Rewards. Your team’s recommendations for changes to what her firm provides to managers, sales agents, and administrative staff in: Base pay Incentive pay Benefits These recommendations should support the main strategy you selected for your total rewards strategy. You can make changes to each or any/all in combination. Present your recommendations to Laura and her Management team being sure to include WHY you choose the strategy you are recommending, what research or data you used to develop your recommendation and how you came up with the base pay, incentive pay and benefit changes you are recommending.