Question

You have just finished reading an article in a personnel journal about compensation plans. The turnover rate in your firm is too high, especially the cost of losing experienced employees. The CEO has indicated there is a 50% chance the budget for a new compensation plan would be available next year. You must decide which compensation plan warrants further study by your HR staff. Each study costs $3,000 and will be automatically charged against your budget as "Incident Cost" in your Budget Analysis and Report. You may only choose one response from the options given below; if the one you choose pertains only to production workers, you may assume that another system would also be instituted for management.
a. A system based on the relative worth of jobs.
b. Many feel that higher level employees perform sufficiently different work and should be paid at a higher rate.
c. This may be contributing to an unspoken morale problem.
d. This system may help protect the firm against discrimination claims, as equal work would be paid equal pay.

Answer 1

Answer:

(C)

Explanation:

Which compensation plan warrants further study by the HR staff?

(C) An unspoken morale problem

Further study should be carried out on this, in order to decipher the reason for the high cost of losing experienced employees.

Morale problems that experienced staff are facing might include: slow or no promotion, neglect of their efforts or talents, poor compensation plans or benefits, etcetera.