Murdoch University MBS668 Report: Managing Remuneration and Strategy

This report delves into the critical aspects of managing remuneration, benefits, and motivation within the context of a case study involving a Singaporean insurance company undergoing strategic change. The report begins by examining the role of government in remuneration policies, specifically critiquing the suitability of the existing NWC agreement for supporting the establishment and growth of CUAP. It then addresses EEO and gender issues in pay plans, offering recommendations for managing the gender pay gap. The analysis extends to the total rewards model, using Armstrong's framework to outline remuneration plans for different departments like Sales, Claims, and Adjusters, considering both intrinsic and extrinsic motivators. Finally, the report explores strategic reward goals, discussing how remuneration and benefits can support the new enterprise's financial, learning, and process-related strategic objectives. The report emphasizes the importance of aligning remuneration strategies with the organization's overall strategic goals, improving internal communication, and attracting and retaining talented employees. The report provides a comprehensive analysis of remuneration strategies, benefits, motivation, and the importance of addressing gender pay gaps and strategic alignment.

Running head: MANAGING REMUNERATION
Managing Remuneration
Student’s name:
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Author’s note:

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1. Role of government in remuneration policies
Critique the existing NWC agreement’s suitability for supporting CUAP’s establishment
and growth
NWC (National Wage Council) in Singapore sets the guideline to enhance productivity
by transforming the organisations and upgrading the skills. NWC marks the improvement in the
labour market along with economy to have strong productivity growth. NWC is planning to
improve the momentum to continue with the real wage so that the business can sustain in line
with the productivity in long-term (Mom.gov.gs, 2018). NWC is to spur the productivity in order
to strengthen the capabilities of the organisation to deploy the employees. The main goal of the
organisation is to lead to Transform and Grow; however, the organisation is taking advantage of
the Enterprise Development Scheme so that the organisations can improve productivity. In
Singapore, economic restructuring is continuing and NWC finds out the needs of the employees
and employers needs to work closely with the employees.
Internal Research of the employees and feedback from the SIEU provides an indication
that staffs have created an opinion that JI has been into nearly bankrupt and the employees will
be laid off. The competitors see the opportunity to grab the large clients and high-value staffs;
the productivity of CUAP would fall. CUAP will have the skill framework to set up the training
committee in order to drive the skills training along with career pathway. CUAP will follow the
NWC where the organisation can get the wide-range of Government support under the Adapt and
Grow and along with Skills-Future. NWC will also help the CUAP to transform the workplace
through progressive employment and digitalisation and human capital development. CUAP is
planning to increase in employees' participation through NWC's guideline providing support like

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Career Support Programme and Professional Conversion Programmes. CUAP will take into
consideration different business conditions, economic outlook and productivity growth in sectors
and firms. NWC reaffirms wages principles which are needed to be sustainable and fair.
2. EEO and Gender Issues in Pay
Plans to manage the gender pay gap in CUAP
CUAP is a new organisation and CUAP needs to understand JI's own glass pyramid and
they can benchmark the change. CUAP will look around JI's data and they focus on the
percentage of male and female ratio. JI must not give the idea of promotion gap and CUAP needs
to start to mitigate the issue from the HR department. CUAP should start checking out the
quality of the organisation’s action plan. JI needs to publish a narrative explanation for the
reasons behind the pay gap so that they can fix it. CUAP will accept the responsibility and
acknowledge the gender pay gap and the management will brush it aside with sweeping
statement. CUAP should conduct the gender pay gap analysis so that the management can look at
the salary and bonus. As stated by Pilcher (2017), CUAP management needs to take Equal Pay
Pledge which must demonstrate the commitment to equal pay by sharing the results. The HR
department of CUAP must make an equitable offer so that the women employees are less likely
to negotiate and they will leave less room for negotiation. The women employees can evaluate
the pay scale annually and they can become more transparent in the approach towards payment.
In addition, the management of CUAP can equalise the performance reviews by
understanding promotions, reviews and bonus distribution which can affect the unconscious bias
which is related to the behavioural traits. Performance reviews of the organisation provide the
manager with the training and controls to ensure men and women must be evaluated fairly

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(Auspurg, Hinz & Sauer, 2017). Finally, the management can start a conversation with the
employees and the management must encourage the female employees to use their voices
(Macias & Stephens, 2017). Gender pay equality can be ensured through salary transparency
within the organisation CUAP. Gender inequality and Equal Opportunity can be reduced through
better training when the senior staffs may need to work harder.
3. Total Rewards
Use Armstrong’s total reward model to outline the rewards planning to use in the CUAP
remuneration plan
Armstrong stated that employees must be rewarded both extrinsically and intrinsically
and it helps to foster engagement of the employees towards job, positive behaviour and
commitment towards the organisation. Extrinsic motivation is about performing behaviour to
engage in activities to earn reward in order to avoid punishment. Extrinsic motivation comes
from the desire to get something in return (Shields et al., 2015). Intrinsic motivation is involved
in engaging in behaviour which is personally rewarding and performs the activity for the sake of
the owner's desire. Flexible benefits plan is associated with the rewards, pay, benefits and
learning and development. Total reward model extends the remuneration for just the payment
and it must benefit the intrinsic aspect of work. CUAP can take total reward model in order to
improve productivity, reduces the staff turnover, helps in recruiting the employees and increase
the reputation of the employer both externally and internally. Therefore, CUAP will divide the
remuneration plan into two categories, intrinsic and extrinsic so that the employees must be
motivated to do the work.

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Sales: CUAP will set the remuneration based on the performance of the sales executives.
The sales executives will have a fixed salary and the experienced sales employees will be
expected to earn an average total compensation higher than others. Based on the performances of
the sales executives, the executives will get fringe benefits. Apart from salary and extra benefits,
the sales executives will get pension, career opportunities and learning and development
opportunity (Rees & Smith, 2017). In each week, the management will provide training to the
sales executives.
Claims: Remuneration plan of Claims will be based on the performance and they will
have a fixed salary as well. The remuneration plan of Claims will describe the job description
and job evaluation of Claims. In the third part, it will describe the job hierarchy and pay survey.
CUAP needs to fix the wage and salary differentials in order to prevail the wage and salary rate.
Intrinsic factor is associated with the working environment and the Claims must have the work-
life balance. Flexible working culture is needed for the employees.
Adjusters: Remuneration plan for the adjusters will also have the two simple
components. First, adjusters will establish the appropriate pay level for each job and the
management can do grouping the different pay levels. Adjusters will get a fixed salary and the
total reward will be provided by providing recognition of achievements and company culture.
4. Strategic Reward
What type of strategic goals should the new enterprise pursue? How will you use
remuneration and benefits going to support this?
Strategy formulation is important for the well-being of the new company. There are
mainly two types of strategies; corporate strategy where the management decides which line the

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business needs to engage, the second strategy is about the competitive strategy that sets the
framework to achieve success in particular business (Rappai, 2016). JI plans to separate the
CUAP and the management can take both corporate strategy and competitive strategy. The team
of JI drafts the ideal workflows and structure of the organisation to exceed or equal the
competitors. In addition, Value Based system model of remuneration is followed by the
organisations where the organisations earn the profit based on the value they add to the clients.
Value based system allows the organisation to share the risks and rewards of media investment
to make the value the organisations create. Value based system brings greater sense of business
into the organisation to make relationship by allowing the organisations to guarantee a break-
even point and then the organisations can earn all their profit based on the performance. As
stated by Sogaard et al., (2015), value based remuneration model is the future of organisation
contracts as it entirely aligns the work of the organisation with clients’ business goals, therefore,
all the resources of the organisation are focused on accountable for the value to make profit.
CUAP can take the financial strategic goals of becoming the market leader and provides
satisfaction to the customers. Financial strategic goals are also associated with the increased
revenues and diversified the revenue stream. CUAP can take the learning and growth of the
strategic goals to improve the internal communication, a number of reporting tools, surveying the
teams and balance the employees’ utilisation rate. CUAP can also take the strategic goals for the
business processes setting the restructure organisation,
The new organisation can set the strategic goal of improving revenue and developing
internal communication. The new organisation can set the strategic goal of restructuring the
organisations. In order to fulfil the strategic goal of improving the revenue, the management
needs to attract and retain talented employees and the management can reward the right

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behaviours of the employees. The right behaviour of the employees leads to a healthy corporate
culture and the motivated employees will help to lead to improve the revenue (Heikkila et al.,
2018). Remuneration strategy will help to align the organisation’s strategic objectives and it
improves the productivity of the employees. CUAP’s internal communication can be improved
through generating the remuneration policy which sets out the guiding principle for the
organisation's remuneration strategy. CUAP can come up with the remuneration committee
which provides the governance across the organisation's remuneration strategy. Remuneration
Committee assists to set the compensation, incentives and bonuses.

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Reference List
Auspurg, K., Hinz, T. & Sauer, C., (2017). Why should women get less? Evidence on the gender
pay gap from multifactorial survey experiments. American Sociological Review, 82(1),
179-210.
Heikkilä, M., Bouwman, H., & Heikkilä, J. (2018). From strategic goals to business model
innovation paths: an exploratory study. Journal of Small Business and Enterprise
Development, 25(1), 107-128.
Macias, A., & Stephens, S. (2017). Intersectionality in the field of education: A critical look at
race, gender, treatment, pay, and leadership. Journal of Latinos and Education, 1-7.
NWC Guidelines. (2018). Retrieved from:
https://www.mom.gov.sg/newsroom/press-releases/2018/0531-national-wages-council-
2018-2019-guidelines
Pepper, S. (2016). Senior executive reward: key models and practices. London: Gower.
Pilcher, J. (2017). Women of their time: generation, gender issues and feminism. Abingdon:
Routledge.
Rappai, G. (2016). Europe en route to 2020: A new way of evaluating the overall fulfilment of
the Europe 2020 strategic goals. Social Indicators Research, 129(1), 77-93.
Rees, G. & Smith, P. eds., (2017). Strategic human resource management: An international
perspective. London: Sage.

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Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Sogaard, R., Kristensen, S. R., & Bech, M. (2015). Incentivising effort in governance of public
hospitals: Development of a delegation-based alternative to activity-based
remuneration. Health Policy, 119(8), 1076-1085