Question

An exit interview assessment finds that the primary reason employees leave is for better total rewards offered at other organizations. Which is the best action HR should take to gather information on competitive total rewards packages to potentially offer its employees?

Send an internally developed survey to local competitors asking what total rewards they offer.
Conduct a focus group session for management input on the effectiveness of total rewards.
Participate in an external remuneration survey to assess the competitiveness of the organization's current offerings.
Survey employees to identify what total rewards the company should offer to them.

Answer 1

The best action HR should take is to participate in an external remuneration survey to get an accurate benchmark of the market and to assess the competitiveness of the organization's total rewards offerings.

Step-by-step explanation:

An exit interview assessment finds that the primary reason employees leave is for better total rewards offered at other organizations. To address this issue, the best action HR should take is to participate in an external remuneration survey to assess the competitiveness of the organization's current offerings. This action allows HR to get an accurate benchmark of the external market and understand where their total rewards package stands in comparison to other organizations. Surveys tailored to compensation and benefits will provide objective data that can then be analyzed to inform strategic decisions regarding the organization's own rewards packages.

While sending surveys to local competitors, conducting management focus groups, and surveying employees can offer some insights, these methods may not provide the comprehensive, objective data needed to make informed decisions regarding competitive compensation. External remuneration surveys are specifically designed for this purpose and are the most effective way to ensure that the company's offerings align with market standards.