To All Employees,
As we enter into the third quarter we would like to share with you our second quarter results. In the midst of recent market turmoil and a downgrade in the U.S. credit rating, MassMutual has reported solid results and strong growth. Our operating earnings and investment earnings have both increased by 30% in the first half of the year. One measure that has decreased is sales in weighted whole life insurance. This is down 5%, although we are already noticing a rise on sales since the recent quarter end.
With the second quarter numbers recorded, we can begin to analyze the measures that determine our annual bonuses. The main drivers for the bonus fund are net operating income, weighted whole life sales, and expense efficiency. These drivers are performing well and we are on track to fund the bonus pool in the range of 85 - 110%.
Overall, MassMutual’s second quarter results are commendable and we want to thank each and every employee for helping the organization produce such strong results. I have no doubt that with continued effort and hard work, we will be able to report even stronger numbers in the next half of the year.
The manner in which you thanked your employees for their work and and encouraged them to continue it was very good. I liked how you ended the memo with anticipation for next quarter's results. I also thought it was good how you informed them of the metrics that would be used to judge their performance. This will give them a god sense of direction moving forward.
ReplyDeleteKelly, good job outlining the metrics. It gives a solid foundation of performance and health of the organization. Is everyone in your organization eligible for variable compensation or bonus plan?
ReplyDeleteI ask this because there may be a sense of resentment when discussing bonuses and increased payouts that perhaps others in the organization are not eligible to take part in. Just a thought reading as an outsider.
I concur with both Greg and Steve's opinion regarding communicating the metrics for bonus. If I were working for this company the metrics would defintely stick with me.
ReplyDeleteI liked your expression in the faith and confidence in your employees as well despite some challenging times.
I think it was nicely written and to the point and noticed there were no actual amounts of the earnings only percentages based on last quarter's earnings. Clearly they all know how much the earnings are from the previous update so you are giving them the new info.
ReplyDeleteKellie, this was a very well written statement! It was very enjoyable to first read off that your company has reported "solid results and strong growth." I also thought it was good that you announced the annual bonus coming up and the notified them about the metrics that would be used to determine their bonus. Good wrap up too as you thanked the employees for their hard work and showed your confidence in them for the future.
ReplyDeleteVery nice job, Kellie! You did a great job outlining the second quarter performance, and certainly hooked the employees in with your discussion of the bonus pool. Overall, I would have to imagine this message would be effective at motivating the employees of MassMutual.
ReplyDeleteIf you want to make a difference in people and get their attention talk about the bonus! You did just that and despite stating some measures have decreased you still mention that bonus are in a good position for high payout. Certainly would get my attention in this message (hey, maybe money motivates me).
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