Lotte Insurance Reduces Rank System and Introduces Performance-Based Approach

[Asia Economy Reporter Oh Hyung-gil] Lotte Insurance announced on the 31st that it will strengthen the performance-based system through improvements in the personnel system.

On the 26th, Lotte Insurance labor and management agreed on improvements to the personnel system and held an explanatory session on personnel system improvements, including salary and rank systems and evaluation system improvements, for all employees.

The personnel system improvements focus on encouraging performance-based principles, enhancing responsibility, and simplifying the system. The executive rank system was changed from five levels to three levels, and employee ranks were changed from multiple levels to two levels.

A multi-faceted evaluation system involving all employees was introduced to enhance the objectivity and reliability of evaluations, and the rotation work system and career development system were newly reorganized.

A Lotte Insurance official stated, "We will continue to make efforts to ensure that the company's performance leads to rewards for executives and employees, and that evaluations and rewards for executives and employees become more objective and transparent."