Advanced Human Resource Perspectives: Johor Insurance Incentive Scheme

This case study examines Johor Insurance (JI), a Singaporean insurance company facing challenges to its sustainability. The analysis focuses on remuneration, benefits, and reward strategies to improve JI's strategic change. The solution proposes a position and skill-based incentive scheme to motivate employees, particularly Commercial Underwriters Asia-Pacific (CUAP), to maximize sales, retain key personnel, and comply with Monetary Authority of Singapore (MAS) regulations. The proposed incentive plan is performance-based, designed to lower client attrition, increase sales, and boost productivity. Incentives are calculated based on monthly performance metrics like sales achieved, new clients added, and revenue generated, ensuring all employees feel satisfied with the policy. The study references relevant research to support its recommendations.

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).

The Incentive plan will be completely performance based for both skilled and position based
remuneration drawing employees. The first step will be understand what is the end result of the
business. Here the organization wants to lower the attrition of clients, increase the sales, and
increase productivity. The incentives should be designed accordingly.
The incentives should be based on monthly performance of the employees specially lower
management, sales and marketing team. The Incentives should be given when the staff performs
better that the benchmark. The calculation of number of sales achieved, new clients added and
amount of revenue generated shall be common for all level of employees to determine
incentives. This is very important that they should feel satisfied with the companies incentive
policy.

Reference
Cook, Wade D., Nuria Ramón, José L. Ruiz, Inmaculada Sirvent, and Joe Zhu. "DEA-based
benchmarking for performance evaluation in pay-for-performance incentive plans." Omega 84
(2019): 45-54.
Heltemes, Kevin J., Kenneth R. Pelletier, Andrea C. Ippolito, Diana C. Do, and Brandon C.
Boylan. "The Association Between Incentive Designs and Health Assessment or Biometric
Screening Completion." Journal of occupational and environmental medicine 61, no. 4 (2019):
e146-e149.