Table of Contents
Introduction about Compensation Strategy
Considering the importance of ascertaining how an effective compensation policy is structured and how it eventually contributes to employee and organisational productivity, this report will discuss the compensation strategy and policy at one of Singapore’s largest business organisations (which is also considered as among the largest ones, pan Asia), Singapore Telecommunications (Singtel) (Singtel 2022). Founded in 1878, and now operating with around 24,000 employees across its units, the company has continued to own both wired and wireless networks, offering data and voice services to a wide range of customer base, entailing individuals and businesses (PitchBook 2022.; Singtel 2022). Headquartered in Comcentre, Singapore, Singtel has been growing at a fast pace, spreading without and outside Asia exponentially. The company now services enterprises around the globe and operates through 53 offices located in 17 countries worldwide (Singtel n.d.). The company has a diverse portfolio, wholly owing Optus in Australia and a minority equity stakes in Airtel in India, Telkomsel in Indonesia, Globe Telecom in Philippines, and Advanced Information Technology Services and Intouch in Thailand (PitchBook 2022). Though the company’s majority share in Singapore is owned by the Singapore government, Singtel’s corporate identity is so powerful and its market presence is so strong that it has continued to own stakes in one of the most successful telecommunication businesses especially in Asia (PitchBook 2022). Moreover, the financial vigour of the company is quite evident from its revenue growth in 2020 which had been 1,654 crores SGD.
Business Objectives of Singtel
The primary business objective of Singtel is to create sustainable and long-term business growth and expansion (Singtel 2019). The company also aims at delivering superior return on investment (ROI) to its shareholders, generating positive impact on the stakeholders (Singtel, 2020). Moreover, among the company’s business objectives is sustaining its group consumer and group enterprise core businesses that can enable consumers, businesses, and governments to effectively connect, communicate, collaborate, and transact (Singtel 2020). Moreover, the company’s group digital life business is also aimed at synergising new growth drivers in the digital domain through leveraging its unique telecommunication assets and customers’ knowledge base (Singtel 2020). Besides, the company has recently aimed at contributing to a more digitalized and intelligent future converging technologies like Artificial Intelligence (AI), IoT, and 5G to radically improve its revenue earning processes and the way the company performs its business operations (Singtel 2019). Moreover, the company’s objective is to leverage its regional scale and reach for driving a digital ecosystem, including mobile financial services and other forms of contents that have the potential to generate a value proposition for its 690 million customers worldwide (Singtel 2019).
How is the company’s compensation strategy linked to the business objectives of the company?
Singtel’s compensation strategy is linked to its business objectives. The company provides a compensation package that is quite competitive within the given industry, integrating not only a competent basic pay structure based on job roles, but also variable other components, including employee benefits and rewards that propel motivation among employees, encouraging them to contribute largely to the company’s goal of business growth and expansion. Singtel’s compensation strategy values employees’ wholesome contributions, and hence, apart from performance appraisal on the basis of which the basic pay scale of the employees is decided, the company has embarked on the process of implementing the strategy of rewarding employees for their contribution to business performance that is linked to the core objective of the business to grow and expand beyond the present regions of operation (Staff Writer 2016).
Compensation Structures of Singtel
Different levels of employees in Singtel are compensated differently according to skill competencies and job role diversifications. But even though the salaries, rationally, differ from one job position to another at Singtel, employee benefits and reward system are meant for all. In this respect, it has to be noted on the basis of task performed, the compensation packages differ in Singtel (eMolument n.d.). For example, while a senior manager at Singtel is paid $87,000 annually, and a Junior Operative is paid $22,000 annually, a Junior Manager is paid around $43,000 on an annual basis (eMolument n.d.). Such differences in pay structure, as can be observed is rationally established through ascertain job role, job responsibility and the skills and competence involved in performing the job roles.
Singtel’s Compensation Strategy’s Role in Remaining Competitive
Singtel’s competitive strategy is leveraged to keep the company afloat in terms of profitability and in the context of drawing the attention of best talents from the market. Singtel provides employees with a compensation package that is quite competent compared to its market rivals. In this respect, it has been observed that when compared to global competitor like Vodafone, Singtel has scored better in salary and compensation packages in some specific job roles and positions. In this regard, it has to be noted that while a deputy manager at Vodafone is paid around USD 1,7769 annually, a manager at Singtel is paid around USD 8,5678 per year, revealing the competent compensation structure of Singtel (Glassdoor 2022).
Benefits Provided by Singtel to Its Employees
Apart from providing a competitive salary package, Singtel has been known for providing employees with growth opportunities. Moreover, the company is also known for providing an appropriate work-life balance to its employees, which has been more pronounced during the COVID-19 pandemic phase when the company supported remote working in a through and effective manner through provisions for medical benefits like free vaccination and lesser reduction in perks and other components constituting the compensation strategy of Singtel (Loong 2021). Particularly during the COVID-19 phase, Singtel has provided myriads of benefits to support the financial, psychological, and physical health of its employees. In this respect, it has to be noted that the company has entitled its employees to sick leave on the day of vaccination and weekly remote working whenever an employee reports feeling unwell (Loong 2021). Moreover, Singtel’s employees continue to get covered by the company’s insurance plan that contribute to employees’ medical expenses for any sickness or any disability that may result from vaccination. Besides, there are some legally required compensation components that are taken much care of at Singtel, enhancing the company’s compensation strategy even more. In this respect, remaining compliant with different employment-related legal requirements of the different countries of operation, Singtel provides its employees with some rudimentary benefits, encompassing, childcare leave, maternity and paternity leave, as well as adoption leave (Singtel 2022). Moreover, complying with the legal requirements of the Singapore government, Singtel provides it employees with flexible and comprehensive job options along with providing them with free health screening and medical insurance (Singtel 2022).
Pay Transparency, Compensation Strategy, Linkage with Organisational Culture, and the HRM Policy
In some specific job roles, as has been discussed before, Singtel pay more than its competitors, but the actual compensation strategy at Singtel is to foster a high transactional strategy in which the company requires high productivity from employees in lieu of a highly competitive pay structure. Moreover, in terms of transparency, it can be said that in 2015, the company was considered Singapore’s most appropriately governed company having compensation policies that are transparent and shows accountability to all the stakeholders, integrating employees’ suggestions in the compensation strategy development (Singtel 2015). Moreover, the compensation strategy of the company is attuned with its organizational culture that relies on personal responsibility and accountability for self-growth and development (Singtel 2022). By establishing a workplace culture of support, the management at Singtel provides growth opportunities to the employees, making it possible for them to attain and hone skills that help them advance in their career, thereby, providing them with the chances of job promotion and obtainment of a salary package that is in aligned with job roles, responsibilities, skills, and competencies (Singtel 2022). Moreover, the HRM policies at Singtel are in synch with its organizational culture of collaboration and teamwork. The policies foster employee competence through having a strong feedback loop which is 360 degrees in nature, allowing different strata in the organization to appraise each other, paving the way for a wholesome development in the organizational and personal development contexts.
Conclusion and Recommendations
The compensation policies of a Singtel matter largely in the context of helping the management of the Singtel align the performance of the employees with the mission, vision, goals, and objectives of the company. An effective human resource management (HRM) system of Singtel is often characterized by the robustness and efficacy of the company’s compensation system that entails employee benefits and advantages. Considered as Asia’s leading communications technology group, which has been operating across the world’s fastest growing and most technologically advanced regions, Singtel has continued to provide an extensive range of telecommunications and digital services to both individual consumers, families, and businesses (Singtel 2022). But this business efficacy and prowess of Singtel has been the result of the culmination of different strategic efficiencies, among which the company’s compensation policies and strategies deserve special mention.
It is recommended that apart from arranging for tangible and extrinsic compensation, rewards, and benefits policies, Singtel must give more emphasis to intangible and intrinsic benefits and welfare policies that are integrally related to employee empowerment, motivation, and productivity. Why emphasis must be put more on developing an effective compensation policy is that it is directly related to employee efficiency enhancement and increase in productivity, which is again directly related to the enhancement of the company’s overall productivity and performance.
