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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. If the HR director does secure a salary raise for the machine operators, how should the HR director assess whether it is effective in dealing with the machine operator recruitment and retention problem?
Correct Answer: B
* Objective Measurement: Comparing turnover statistics before and after the salary raise provides an objective measure of the impact of the raise on retention. * Clear Data Analysis: This comparison allows for a clear analysis of whether the increase in salaries has led to a reduction in turnover, directly addressing the initial issue of high attrition. * Performance Metrics: Turnover rates are a key performance metric for assessing the effectiveness of compensation strategies in retaining employees. * Decision-Making: The data obtained from this analysis can inform future decisions regarding * compensation and retention strategies, ensuring they are evidence-based and effective. References: * SHRM-SCP Exam Content Outline * SHRM guidelines on employee retention and compensation strategy assessment