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Question: The case study LOIB is an insurance brokerage business practice. The firm employs 83 p...

The case study

LOIB is an insurance brokerage business practice. The firm employs 83 people, of whom 50 are insurance agents, 33 people are employed in other professional areas and administrative roles and 5 people are employed as managers.

The firm has chosen to adopt an aggressive approach to increasing its market share.

LOIB wishes to introduce a reward and performance management system for all of its employees that is consistent with its new approach to increasing market share.

Brokers are required to:

- Open new accounts

- Expand areas of business

- Expand LOIBs brand recognition

- Secure advantageous amendments to existing accounts.

Those employees in professional, managerial and administrative roles are required to contribute to achievement of an increased market share. Their performance is assessed on the following criteria:

- Client relationship and capacity to develop business

- Team work

- Technical skills

- Leadership and management skills as relevant

To date, all employees have participated in an annual review of performance and contingent on satisfactory performance, employees have progressed through 5 levels of salary progression.

The question: its one big question

You are a consultant that specialises in performance and reward systems. You have been engaged to design a Performance and Reward Management System for employees of LOIB. The design you recommend must address the following issues and specifically take into account the implications arising from the COVID-19 pandemic on performance and reward systems.

1. Should LOIB introduce a system of rewarding individual and collective effort? Should the reward system be the same for all employee groups of LOIB? Explain your reasoning.
2. Should LOIB adopt a competency based or results based system of performance measurement? Why?
3. In addition to base pay, what reward components should be included in the performance and reward system?
4. What type of performance appraisal method would be most effective at LOIB?