Total Reward Design and Management in SIA Engineering Company Report

This report provides a comprehensive analysis of total reward design and management within SIA Engineering Company (SIAEC), a Singapore-based aircraft maintenance, repair, and overhaul (MRO) company. It explores the company's business strategy, including its alignment with Singapore's ITM (In...Read More

Running head: SIA ENGINEERING COMPANY
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Total Reward Design and Management in SIA Engineering Company
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Total Reward Design and Management in SIA Engineering Company
SIA Engineering Company Limited is a manufacturing company in Singapore,
specializing in aircraft overhaul, repair, and maintenance services. The company was formed
in 1992 and located in the Asia-pacific and wholly-owned Singapore Airlines Group
subsidiary. SIA Engineering Company has a client base of approximately eighty international
aerospace equipment and international carriers’ manufacturers. According to Khillari (2020),
the company also provides exceptional line maintenance services at thirty-five airports in
eight different nations. It also offers maintenance to more than fifty international carriers and
airframe as well as overhaul components on some of the aircraft services that are widely
used. SIA Engineering Company has more than twenty-five subsidiaries and joint ventures
with original airlines and equipment manufacturers in Singapore, Japan, United States,
Thailand, Philippines, Hong Kong, and Indonesia as its primary business partners. The top
competitors of the company include the FL Technics Training, StandardAero, Pemco
Aviation Group Inc., Vector Aerospace Corporation, SR Technics, and the Delta TechOps
Inc. According to Bardai et al. (2017), SIA has several international Airports with the annual
revenue of the company is S$1104.1 million. Similarly, it has an operating and net income of
S$72.0 million and S$332.4 million, respectively. SIA Engineering Company has a total of
six thousand three hundred and thirty employees who ensure that the services are adequately
done.
ITM plan and Initiatives
The government of Singapore outlines significant intends to create better career
opportunities and jobs to all employees in the engineering company as well as ensure the
provision of support for competitiveness and growth of the sector in the coming years. The
Ministry of Trade and Industry is also steadfast in creating opportunities for the enterprises as
well as good jobs for the people. According to Chang, Lee & Wu (2019), the ITM aims of

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Air Transport are to achieve exceptional and real value-added developments of
approximately thirty percent for five years. As part of the government of Singapore's broader
strategy, Air Transport ITM works to ensure growth and its competitiveness in all the
industries in the region with credible economic stability. According to Ivashina & Lerner
(2019), most of the companies within it have also been revamping with opportunities
regardless of the major setbacks that they experience in their operations and management
processes.
Overall Business Strategy
SIAEC aims at exploring various transformation maps supported by pillars such as
productivity, skills, and job, as well as innovation, to ascertain its credibility and success in
the competitive plan and sound progress.
Current and Future human resources challenges in SIA Engineering Company
Limited
Compensation
According to Wirtz & Heracleous (2016), human resource management for cost-
effective services is faced with different challenges. In SIA Engineering Company, the
management is committed to ensuring that the personal information of their clients,
customers, and employees are protected from any form of misuse. The personal data
collected are disclosed or used only for job applications as well as the potential employees
that are pertinent in the company. Wirtz & Heracleous further added that in Singapore has
recently improved and being steadfast in cruel resource practices, SIA Engineering Company
has experienced massive fines from its customers. The increased number of deaths that the
company experienced in the recent past did not only paralyzed its operations but also
complicated its access to other esteemed customers that it has had in the past. The company
was fined a massive sum of money to the cutter for the employees lost as compensation.

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Even though profit may be of great importance for a company, ITM initiative can create a
system of payment for eventualities builds confidence within companies.
Current Human Resources Challenges
Compliance with Government Laws and Regulations: Keeping up with increasing
changes in employment laws is a significant struggle for the SIA Engineering Company. The
choice to ignore the employment laws assuming that they little apply for the success of the
company has exposed the company to massive setbacks in maintaining stable operations in its
numerous countries.
Role of ITM Plan Initiative
According to Kolte et al. (2019), exploring the technological and social-economic
situation of a company through an ITM plan and initiative helps the company to comply with
both the local, state, and federal laws governing employees. The availability of regulation in
the ITM initiative to regulate everything in industries in Singapore will allow the
management to comprehend all issues related to the success of the company.
Future Human Resources Challenges
Adapting to Innovation: According to Milkovich, Newman, and Gerhart (2017),
technology has changed continuously in SIA Engineering Company Limited. The need for
quick adaption is also needed to reduce the risk of being overtaken by its competitors. The
challenge for SIA Engineering Company is getting employees to learn new technology and
embrace innovation.
Role of ITM Plan Initiative
Through ITM initiative and plans practiced in entire Singapore, communication has
been of great significance. Any change made in the company should be understood by teams
to know why, how, and when they can be implemented. Overall, provision and setting clear
goals in the company can help the company meet its needs and competitive strength.

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Elevation of Human Capital Investment: Milkovich, Newman, and Gerhart added
that approximately thirty percent of HR management in SIA Engineering Company indicates
that the biggest challenge for the future of the company is based on the acquisition of human
capital as well as optimizing capital investments.
Role of ITM Plan Initiative
Through an in-depth analysis of the problem, it is clear that ITM initiative can be used
to retain all good employees as well as attract other best talents.
External Factors Affecting SIA Engineering Company Design and Management
Grants
According to Reason & Hobbs (2017), systems and situations are more natural to
change as opposed to human conditions, especially when they are well-motivated and trained.
However, the success of SIA Engineering Company depends on how collaborative the
company is with other factors that are associated with it. Remarkably, it experiences
significant external factors that not only chars its operations but also limits its progress. The
common factors affecting the company include government policy, market forces, and
Unions.
Government Policy
According to Milkovich, Newman, and Gerhart (2017), this is a principle that
provides better guide decisions in companies, leading to positive results to enhance the entire
unit. Government policies are mainly used to determine why things are supposed to be done
in a specific way and why. In SIA Engineering Company, the company explores these
polices to boost its operations and quality productions.
Training Subsidy: For credible operations of industries in Singapore, the government
is spoilt of choices in policy applications. Training subsidy determines the skills and
qualifications that an employee has for possible amounts of compensation and benefits.

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Implementation of training schemes proposals in the SIA Engineering Company limits
crowding in the private training investments of the company. Milkovich, Newman, and
Gerhart argue that lack of proper training subsidies reveals that most training can take place
without government intervention, thus limiting the company's designs and management
grants.
Grants: The government of Singapore gives financial rewards to industries to fund
some of the new projects. The provision of funds as a government policy in the SIA
Engineering Company helps in creating external and internal management designs that can
help employees to carry their operations with ease.
Impacts of Market Forces in the SIA Engineering Company
According to Chan (2016), SIA Engineering Company design and management grants
are affected by market forces. The labor market and product market are the main contributing
factors that impact the company’s design and management.
Labor Market and Company’s Design and Management
The labor market increases the availability of the workforce in the company in terms
of supply and demand. As the number employed in the SIA Engineering Company, it boosts
the company's design. In contrast, if the number of employees and the amount of labor
available is low, the management grant is affected. However, in terms of the management
rewards, the higher the number of workers, the lesser the amount given to them.
Product Market and Company’s Design and Management
The product market increases the international and local markets where goods and
services are being sold. In the company, focusing on selling finished goods that do not
include other intermediate materials has adversely led to its growth in the international
platform. Exercising product market regulations has had a significant impact on SIA

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Engineering Company as it places restrictions on the product market operations. The product
market increases the final destination, where goods and services are being sold.
Unions
Tripartite Alliance: Unions usually negotiate for the wages that employers might
want to pay. They typically ask for higher salaries as opposed to the equilibrium wage. In the
SIA Engineering Company, the body has played a significant role is ascertain the success of
the company. According to Wirtz & Heracleous (2016), managing human resources is usually
done for the excellence of a company, and the Tripartite Alliance has had a substantial impact
on employment practices in the company leading to positive results. The Tripartite Alliance
promotes greater awareness of progressive and fair employment among the general public
and employers. As a result, it reduces discrimination that might be realized in the company.
The emerging trends and changes in SIA Engineering Company include employee
management, shareholders shift, training and communication, safety management systems.
The company has ensured that the management system is adversely integrated for the safety
of both the employees and the employers. Overall, the rationale links the employees for a
sound compensation process upon retirement or death.
Compensation Strategy for SIA Engineering Company
Base Pay
According to Milkovich, Newman, and Gerhart (2017), the Compensation strategy is
done in four different steps, assessing all its implications, mapping the entire approach,
implementing the plan, and reassessing the strategy process as a whole. In the SIA
Engineering Company, the management requires a base pay approach through a pay model to
help in deciding their competitiveness and determine the rates that each employee receives.
The pay models serve as a credible avenue to ascertain the compensation strategy in the

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company among employees. The pay models also outline a significant compensation strategy
that centralizes its operations for a common goal.
Objectives
Efficiency, Compliance, Fairness, and Ethics
Different companies have different objectives that define their compensation
strategies within Singapore. SIA Engineering Company, due to increased competition from
local enterprises and multinational companies for best talents, require properly outlined
objectives to ascertain their success. According to Nankervis et al. (2019), in their study of
pay model, the company also relies on efficiency in all its performance, quality, the customer
as well as a stakeholder in terms of cost. The dependency on fairness and compliance with
the set rules and regulations serves as the most valuable way through which the company can
boost its operations and services. According to Chan (2016), ethics play a vital role in
companies. For instance, as they try to validate the existing rationales that are pertinent for
the success of the company, they've also tried to build the needed trust across all spectra that
are of great importance for the company. Overall, SIA Engineering Company is focused on
following the code of conduct that governs its employees during compensation processes.
Policies
Internal alignment: Most companies in Singapore, like SIA Engineering Company,
depend on domestic strategy for payment alignment, with a little relationship in other modes.
According to Noor, Mastor & Abdullah (2018), job evaluation in the company is done as a
way of creating a healthy relationship with the required demands. However, job analysis, as
per the employees, should be within the company’s setup as well as fair and efficient to all
workers. Compensation is done based on the employee's job levels, competencies, and skills.
Competitiveness: External competitiveness is the pay relationship that exists between
companies. The pay level ranges from the higher positions to the lower ones in the company.

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According to Albers et al. (2017), the pay mix is 70/30 with possible increment based on
production amounts. In terms of market, relevance is determined by the number of customers
and sales done. In determining external competitiveness decision in SIA Engineering
Company for compensation approaches, base pay must be used to evaluate the pay levels.
The company’s pay level should be in terms of hierarchy.
Human Resource: According to Wirtz & Heracleous, L. (2016), HR in SIAEC is
grade four and has a pay range of between $800 per month to $100 per month. However,
regardless of grade and pay range, it ascertains the future payment range in the pay structure.
Contribution and Management: According to Milkovich, Newman, and Gerhart
(2017), maintain in the pay model that employee’s contribution and management process
have a significant impact on the selected compensation strategy by an organization. In the
SIA Engineering Company, the base pays compensation strategy through the pay model has
evaluated coherent approaches through which employees can be rewarded based on their
contributions to the company. Similarly, the management process also aims at creating sound
and forceful strategies to ensure that all employees are paid based on their contribution to the
company.
Techniques
According to Milkovich, Newman, and Gerhart (2017), the success of compensation
strategy depends on the selected methods that an organization has put in place to meet its
increasing functionalities. However, in the SIA Engineering Company, for the pay model,
the company should employ a base pay method in which work is analyzed, described, and
classifications did base on the employee's output. Similarly, for the success of other activities
that are of considerable significance to the company, the use of pay structure can adequately
work through pay structure. Milkovich et al. argue that defining the market, exploring proper
surveys, and maintaining policy issues are essential in ensuring the success of the company.

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Studies have also revealed that if base pay in an organization is capable of providing the
appropriate definition of the market, it will be easier for the SIA Engineering Company to
meet its demands with a lot of ease. Similarly, surveys help to build trust between employers
and the employees within an organization. Pay structures such as pay ranges and pay grade
should be developed to jobs within the company for substantial considerations of the payment
purpose. Developing grading in SIA Engineering Company will enhance its ability to move
its employees between posts within specific grades with limited change in pay.
Pay Performance
Base Pay
Milkovich et al. maintain that base pay as compensation strategy is one of the several
rewards change can influence the behavior of employees. Evaluation of the performance of
employees by the company within a given period helps in setting standards and objectives to
evaluate the payment on each work done. SIA Engineering Company can deploy a reward
decision as well as practices that aim at increasing the likelihood that the behavior of
employees may be in a way that it can achieve most of its strategic objectives. However, the
challenge here may be associated with design rewards that do not enhance the performance of
employees and the success of the organization.
Impact of the Base Pay Compensation Strategy on ITM Initiatives
The base pays compensation strategies that are evident in the SIA Engineering
Company through the Pay Model Concepts have revamped all the operational activities that
the company will involve while trying to satisfy its employees and meeting its demands and
goals. Categorically, in terms of the pay structure and pay performance plan, base pay, which
mainly focuses on the reward decisions for increasing the employee's likelihood to exhibit
specific behavior, the strategy will ensure that the initiated initiatives have sound correlations
with the outlined concepts.

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According to Kolte et al. (2019), in terms of policies and objectives that have been
selected by the company to meet the increasing technological and economic situation, base
pay strategy has boosted the internal alignment of the company and its competitiveness.
Industry Transformation maps have also been initiated to expand the company's performance
and success in operations. In most cases, the selected compensation approach will either
increase the ITMs initiatives or diminishes their credibility. Overall, base pay strategy
increased the employee's contribution to the company while new techniques are being
initiated to expand the company’s success and market explorations. Being one of the bravest
companies in Singapore, the selected compensation will open new avenues for other
possibilities in the internal structures of companies.

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