Remuneration Analysis: Strategies, Policies, and Student Perspectives

This report analyzes Clover's remuneration policies and provides insights into employee compensation strategies during economic downturns. Part 1 discusses remuneration trends, performance-based payments, and the evolving role of human resource management. Part 2 examines Clover's remuneration policy, which aims to attract and retain talent through a mix of short-term and long-term incentives, considering factors like market competitiveness and employee performance. The report also includes perspectives from two students on how to address remuneration challenges, such as preventing retrenchments, freezing pay, and motivating employees during difficult times. Student 1 emphasizes avoiding layoffs through measures like unpaid leave and hiring freezes, while Student 2 suggests strategies like pay freezes and counseling to maintain workforce morale and motivation. The report provides a comprehensive overview of remuneration strategies in a business context.

Running head: REMUNERATION ANALYSIS
REMUNERATION ANALYSIS
Name of the student
Name of the university
Author Note

1REMUNERATION ANALYSIS
PART 1
The article “Remuneration in a downturn’ talks about how the employees are
remunerated or compensated for their contribution to the workplace or organization. In the
twenty first century where the world is heading towards a congested market structure and a
massive financial depression (recession), almost all the companies are facing downturn and
financial drabness in their business. To address such issues, the twenty first century skill
developers, human resource experts, management researchers and remuneration consultants have
been practicing many innovative ways by which they are able to save the jobs. For instance,
performance based payment to the workers have increased and employee innovation ideas are
considered in the organization solemnly. There has been a complete paradigm shift in the
functioning of human resource management and the HR plans have become more
multidimensional and multifaceted. Therefore, it has to be understood that with the new wave of
industrialization, economy and employability, the corporate houses and other institutions also
have evolved up to a certain extent so that they can tackle the increased competition and
recession. Factors such as employee innovation ideas and performance based remuneration have
provided a democratic and prolific atmosphere to the employees to work and showcase their
talent.
PART 2
The policy statement of Clover’s Remuneration Policy is that the respective policy is
aimed at attracting and holding competencies and skills that would support the generations of
return on investments of shareholders in a manner that preserves the ongoing sustainability of
Clover. The mentioned remuneration policy establishes and upholds practices that are fair,

2REMUNERATION ANALYSIS
reasonable and market related, by combining short term remuneration with long term incentives.
The key principles on which the remuneration policy is built are: fair, responsible and market
related practice by special reference to organization’s culture of fairness and equity, the size,
complexity of the business and competitive environment, to carry forward the duty and
responsibility of talent management keeping in mind the vision of the company, benchmarking
and review of the company to be done regularly and remuneration should motivate and allow
differentiation. The benefits offered by the remuneration mix are additional compulsory benefits
and discretional benefits apart from the monthly salary. The employees can select from a
plethora of health and medical schemes. The employees also receive numerous extra benefits on
the grounds of “scarce skills” and other conditions such as Individual performance conditions
and financial performance conditions. The company also has offers of long term and short term
incentives.
STUDENT 1
The student explicitly talks about the idea that “what affects the company would automatically
affect the employee and vice versa” and based on the respective approach, the student talks about
banning the retrenchment of the employees. The unpaid leave policy, for instance, encourages
employees to not take leave but the best way to deal with the industrial upheaval, according to
the student, was that freeze on hiring new employees, which has subsequently helped the
employees to push themselves to think out of the box, increasing their performance and if the
company decides to pay the employees according to their performance, the employees have

3REMUNERATION ANALYSIS
worked harder than what they have actually worked in the company which would not have
motivated them in such a way.
STUDENT 2
The respective student has advocated for the increase in the freeze pay of the employees in an
organization. The student has also supported the fact to sustain STI during the downturn in
industrial sector rather than letting the individuals leave. According to him/her, in such way, a
company would have same workforce to reach the goal. Motivational issues of the employees
can be handled with proper guidance and counseling. The employees, in return, would have the
perks such as shorter work weeks and they would be able to survive with the same salary by
adjusting their lifestyle for a couple of weeks or months till the matter of downturn is sorted out
finally. Such action shows the “caring motive” of the organization, according to him/her towards
its employees.