Incentive Scheme for Johor Insurance: Empowering Employees for Strategic Change

Incentive Scheme
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Part 1.
Johor Insurance is a well known insurance company established in Singaporean it sells
general insurance at retail-level. Recently the company has faced many problem and is facing
significant threats to its survival and sustainability. To save the company from such a fate many
case studies had been done to give the best solution. One such way of providing great stability
and strength to the company is by empowering the employees. A new case study has analysis
with the remuneration and reward strategies and practices central to the success of JI’s strategic
change.
The position-based remuneration is considered beneficial to the organization when the company
is well established and runs on large scale. It should have a stable market share and has excellent
sales. The position based remuneration helps in attracting big clients. The JI business is an
insurance based company and its major clients are generally big retailers. They sell general
insurance in bulk to companies, from where they get loyal customers who will buy their service
year on year. If the case study is considered they have given many incentives and facilities
option to employees at higher position who hold key responsibilities. The reason this
Singaporean company should care about its top employees is to maximize the sale for which they
need to all retain key executives. When an experienced and stable management works on an
international client the success rate is higher. The other most important reason is that insurance
industry in Singapore is heavily regulated, thus they are required to have key personnel approved
and registered with the Monetary Authority of Singapore (MAS). To replace the key personnel
needs an approval from MAS, which would be a very challenging task (Cook et al. 2019). JI
need staff with a set of skills, qualifications and attributes to be known as Commercial
Underwriters Asia-Pacific (CUAP)
Looking at this factor JI can think of introducing strong position and skill based incentives to
gain the benefit from its employees.
Part 2
To motivate employees to keep doing good job different incentive plans are adopted in
almost every industry. JI should also plan something lucrative to push sales and cut cost on bad
employees (Heltemes et al. 2019).