1. Explain the steps you would take to research exactly how your compensation and benefits package is impacting your recruiting and retention.
I think that first and foremost it would be necessary to find out what the competition is paying and what type of benefits they are offering. “Employers must be aware of how their reward system compares with those of others competing for workers in the same geographic areas and in the same industry…” (Henderson) I would conduct a survey to determine how Doiturself Home Improvement Supply Store’s compensation and benefits package compares to similar companies.
Once it has been determined that a survey is needed, I would determine the scope of the survey. I would ask the following types of questions: a. In what divisions are we having the highest turnover? b. “Where is worker dissatisfaction centered?” (Henderson) c. “Where does it appear that market rates outweigh internal rate relationships?” (Henderson) d. “Where is market competition for particular skills or exotic talents most fierce?” (Henderson)
Once the scope of the survey has been determined, it would be time to prepare for the survey. Part of the preparation would include development, implementation and analysis; classification of job or occupation; pay structure; identification of the labor market; influence of competing organizations, selection of respondents; cooperation of respondents; kinds of data to be collected; maintenance of confidentiality; and compliance with legislative mandates. (Henderson) At this point it is time to determine what type of data collection will be used: telephone; mailed questionnaire; online; face-to-face interview; and/or group conferences. “After deciding on the techniques to be used for collecting survey data, the next problem is to determine the best method for identifying benchmark jobs or classes of jobs, or even occupations for which data are to be requested.” (Henderson) This can be done through job matching; class matching; occupational survey method; job evaluation method; or broad classification method. (Henderson)
Once all of the determinants above had been addressed, I would then design the survey. I would include a letter of transmittal explaining the survey and requesting participation, and I would ensure that my survey was clear, precise and to the point. (Henderson) Once all data had been received, I would need to analyze where my company stood in comparison with others in the same industry to determine where the shortcomings were as regards to compensation and benefits.
2. Choose at least two factors of the compensation and benefits package you could add or increase to recruit new employees and two that could help reduce your turnover in that 15-22 month employee group.
For new employees, I would implement a signing bonus program with half the bonus to be paid once the employee had worked a pre-determine amount of time (i.e., 6 months) with the balance to be paid upon completion of a year’s service. “The signing bonus is useful when an employer wants to recruit a candidate when other employers may be competing for the same potential employee.” (Heathfield, Signing Bonus) I found several companies offering signing bonuses to potential recruits in an effort to lure highly qualified candidates to their organizations. I would also offer new recruits re-location reimbursement. This way, I am not limited to using the local talent pool.
For existing employees, I would shift my compensation method from a base pay structure to a merit pay structure. This would enable employees to move up (pay-wise) in the organization and feel that their work contributions matter. “Merit pay is an approach to compensation that rewards the higher performing employees with additional pay or incentive pay….merit pay is the best way to reward the employees that you most want to keep.” (Heathfield) I would also implement a system of bonuses and awards based on performance, attendance, seniority, etc. Again, the employee feels that their contribution is important to the organization and that the organization cares about them.
Works Cited
Heathfield, Susan M. Merit Pay Rewards Performance. 8 July 2012. 8 July 2012 <http://humanresources.about.com/od/salaryandbenefits/g/merit-pay.htm>.
—. Signing Bonus. 8 July 2012. 8 July 2012 <http://humanresources.about.com/od/glossarys/g/signing_bonus.htm>.
Henderson, Richard I. Compensation Management in a Knowledge Based World. New Jersey: Pearson Prentice Hall, 2006.
