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A global manufacturing organization is dealing with a high level of attrition among machine operators as well as difficulty recruiting machine operators at a recently acquired factory. The HR director is attempting to address the issue. During exit interviews, multiple employees mention they are leaving to take higher-paying jobs at other companies in the area. The HR director of the factory in that country believes that the company needs to raise the salaries of the machine operators to address this. The HR director contacts the chief human resource officer (CHRO) to discuss the need for a salary adjustment. The CHRO is located in another country and has never been to the country where the factory is located. The CHRO reviews the most recent salary study for the region and indicates that the salaries the company is paying are competitive with other companies in the region. The CHRO also says that due to recent increases in operating expenses and declines in revenue, it would be financially irresponsible to provide raises. The HR director feels that the executive team located in another country, does not understand the nuances of the local culture and the way the factory operates. What should the HR director do?
Correct Answer: A
* Understanding the Local Context: The HR director needs to convey the unique aspects of the factory and local labor market that might not be apparent to the CHRO located in another country. This involves highlighting specific local economic conditions, cultural nuances, and competitive salary benchmarks that might not be captured in broader regional studies. * Data Collection: Gather qualitative and quantitative data from exit interviews, local salary surveys, and feedback from current employees. This information should detail why employees are leaving and provide evidence of competitors offering higher wages. * Report Preparation: Compile the collected data into a comprehensive report. The report should include: * A summary of the high attrition rates and the difficulties in recruiting machine operators. * Comparative salary data showing discrepancies between the company's pay and what competitors offer. * Insights from exit interviews emphasizing employees' reasons for leaving. * Presentation to Executives: Present the report to the CHRO and other relevant executives. Highlight key findings and recommend actions based on local insights, such as adjusting salaries or other incentives to retain and attract machine operators. * Follow-up: After presenting the report, offer to discuss the findings in more detail and answer any questions. This approach ensures the executive team understands the local nuances and can make informed decisions. This method aligns with SHRM's guidelines on effective communication, cultural awareness, and data-driven decision-making in HR management.
