EMPLOYEES PERFORMANCE EVALUATION AND REWARD SYSTEM IN INSURANCE COMPANY

Abstract

Employees are the key factor in terms of organization, through which the organization achieved positive financial performance and ultimately create sustainable competitive advantage. They desire the best of everything – competitive salaries, comfortable and aspirational lifestyles, job security, career enhancement options, work-life balance, and so on. In order to attract a talented workforce, organizations need to have well-defined philosophy and strategy evaluation system and rewarding. The aim of employee reward policies and practices is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment, and morale of employees. This requires an integrated approach to policy evaluation system and rewarding. Managers have to play their role in maximizing the contribution of employees to achieve corporate goals and purposes. Therefore, employees must understand the business context and the importance of adopting a strategic viewpoint and strategic objectives of the organization. This paper deals with the importance of working efficiency and rewarding the employee as specific functions of human resources management. It begins with the theoretical elaboration of the area previously mentioned and defining the relationship between direct and indirect compensation strategy which will be widely covered throughout the example of an insurance company.