Model of Determining the Salaries and Benefits of Senior Management in The Insurance Industry

Extended Abstract
Abstract
To explain service compensation at the senior management level, in addition to the points of compensation systems, other considerations must be considered that can have profound and significant effects on the performance of the organization. The aim of this study was to design a conceptual model for determining the salaries and benefits of senior managers in the country's insurance industry. The statistical population of this study consists of senior managers, experts and specialists in insurance industry. The research is mix method, qualitative and quantitative. To design the initial model, background study, interview with experts and Delphi method were used. At this stage, sampling was done in a theoretical way with using snowball technique. 16 interviews were conducted with experts and managers of the insurance industry. Confirmatory factor analysis was used to analyze the quantitative data and test the model. The sample size with using the Cocharan relation was 168. Data collection tools in this study include interview and questionnaire that after confirming the validity, its reliability was calculated to be 93%. Finally, the model for determining the salaries and benefits of senior managers in Iran was introduced.
Introduction
Cultural, economic, social, political and technological developments that are rapidly occurring in today's societies have led to major organizational. The consequence of these changes is that human resource management becomes more difficult. The importance of this issue becomes more apparent with advancement at the organizational levels. This means that the closer we get from the service and expert levels to the middle and top managers of the organization, the more the importance of the optimal payment structure becomes clear. How services should be compensated at the highest levels of the organization, including the CEO, board members, and other senior executives, is an issue that will be addressed in this study.
How to compensate for the services of senior managers, despite the numerous articles, is one of the most controversial issues in human resource management. Size, performance, strategy and structure are some of the things that some articles refer to. This research intends to design the service compensation system of senior organizational officials in such a way that in addition to compensating services and motivating senior managers of organizations and preventing any corruption, with considering the interests of all stakeholders of the organization according to corporate governance principles and governing standards.
Case study
This study aims to design and present a conceptual model for determining the salaries and benefits of senior managers in the country's insurance industry.
Theoretical framework
Firstly, Amos software version 22 was used to confirm the confirmatory factor of the sub-models of measuring the main components of the research in the study. Then, according to the positive results, SPSS software version 22 and simple regression test (B test and its standardized value; beta) and linearity test (F test) to investigate the causal relationship between the components were applied. Due to the existence of causal relationships and significant effects, path analysis and model fit in order to achieve the operational model of the research has been done.
Summarizing the presented materials, it can be concluded that the researcher has been successful in achieving the objectives of the research and answering the research questions.
According to this model, two categories of internal and environmental factors are effective in determining the service compensation package that has specific items such as salaries, bonuses, stocks, etc. Internal factors include individual, organizational, industry and environmental factors are social, economic, institutional and informational. This assembly can mutually influence performance. Therefore, the service compensation model provided is dynamically connected to the performance of the organization and the management team.
Methodology
The hybrid approach has been used in this study, the purpose of this is to combine quantitative and qualitative research methods to achieve a proper method and then research objectives. In this study through exploratory interviews with experts and specialists, the effective factors of compensating, the service of senior managers were identified and in the next step, the data were analyzed using the views of insurance industry experts and academic elites through using Delphi technique. The statistical populations surveyed are CEOs, insurance industry experts in Delphi interviews and rounds, and insurance industry experts in the quantitative stage. First, the framework was provided with using previous studies and researches and interviews in this field, and in an attempt to prepare and compile the correct model the Delphi method using experts and purposeful sampling was used. The results of the interview and the Delphi process were to identify the factors affecting the compensation of senior managers' services, which were grouped into components. Then, with the method of path analysis, the relationships between the discovered components and compensation of managers' services as dependent variables were investigated.
Discussion and Results
The results of this study show that individual, organizational, industrial, institutional-information and socio-economic factors are influential in determining the service compensation package and the amount of payment to CEOs interacts with their performance. Reviewing the main research question; The conceptual model of compensation for senior managers' services is done in different ways. The service compensation package may include: salaries, bonuses, benefits, stock options, double retirement, and other long-term contingent compensation, which makes the financial calculation of receipts very complicated or even impossible.
In this model, we evaluate the performance with financial and non-financial criteria. Financial criteria include EPS, ROA and EBIT, and non-financial criteria include market share, customer satisfaction and strategic goals. Performance in this model can affect the payment package on the one hand, which means that by improving the performance of higher payments, on the other hand, increasing payments improves performance. This issue is shown in the model with two-way flash.
Conclusion
The results of the interview and Delphi stages were to identify the factors affecting the compensation of senior managers 'services, which were grouped into components, and then the relationships between the discovered components and compensation of managers' services as a dependent variable were examined by path analysis method. The results of this study show that individual, organizational, industrial, institutional-information and socio-economic factors are effective in determining the service compensation package and the amount of payment to CEOs interacts with their performance.