Incentive Plans for Farm Bureau Insurance

 

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MGT 431 Human Resources Management

 

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Incentive Plans for WHATEVER COMPANY YOU CHOOSE

 

Farm Bureau Insurance offers two incentives to employees. The incentives include a yearly bonus and a company vehicle included with 6,000 personal miles a year. The incentive plans of Farm Bureau Insurance relate to the organization’s needs and objectives by keeping premiums as low as possible while maintaining a profit margin to gain revenue. At the end of each fiscal year the loss to gain ratio is evaluated. The outcome of this ratio determines rather or not employees receive a bonus. The incentive plans rely solely on how much premiums are brought in compared to loss ratios. For example, if Farm Bureau were to bring in $100,000 in premiums and had only $30,000 in losses, bonuses would be a definite for all employees that year.