Page 5 - Business Cases volume 2

Problem and Background of Non-Sales Employee Rewarding System at Bubble
Insurance:

In the insurance industry, employee structures typically comprise two categories: sales and
non-sales employees. Each category has separate salary scales, with sales employees receiving

additional incentives based on their performance levels. Bubble Insurance follows a similar
practice with separate salary scales for sales and non-sales employees. While the annual

promotion procedure is equitable for both groups, non-sales employees receive a lower

percentage increase in salary to maintain parity with their basic salaries compared to sales
employees.

Bubble Insurance has a well-established reward system exclusively for sales employees.
However, in January 2021, the Department of Human Resources introduced a new reward

system for non-sales employees as well, fulfilling their long-awaited desires. Unfortunately,
the new system failed to meet the expectations of non-sales employees.

➢ Reasons for Unmet Expectations:
1. Ambiguous Evaluation Criteria: The main issue lies in the difficulty of practically

meeting the specified evaluation criteria. For instance, employees are required to submit

a self-evaluation report within a limit of 1000 words, which poses challenges in
accurately capturing their contributions. The criteria, such as impact on revenue, cost

optimization, employee and customer well-being, sustainability, work ethics, and
organizational culture, lack clarity and practicality.

2. Lack of Communication: Middle-level and lower-level employees were not adequately
informed about the new system, leading to confusion and dissatisfaction among non-

sales employees.

3. Unclear Selection Committee: The composition of the selection committee responsible
for evaluating employees is not clearly defined, leading to uncertainty and questions

about the fairness of the process.

Addressing these issues is crucial to establish an effective and fair rewarding system for non-
sales employees at Bubble Insurance. Clear, practical, and transparent evaluation criteria, along

with better communication and defined selection committee members, would help create a
rewarding system that recognizes and appreciates the valuable contributions of non-sales

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