Question

The shared service centers of a multinational technology company are concentrated in one country. They provide back-office operational support for the finance and accounting, procurement, and HR functions of the company.

The local talent market for the back-office operations skills is very competitive. To date, the company has been successful in recruiting experienced professionals from its competitors. The main draw has been the generous compensation and benefits package and the general perception of an amiable and cooperative management team. While competitors' workforces have unionized in this country, this company's workforce has remained union-free.
The annual planning process has kicked off. The process requires the global HR and finance teams to recommend the payroll increase budget for each country based on key economic indicators, company performance, affordability, and compensation market survey data. The teams recommend a salary increase budget of 18% for the country with the shared service centers. The country HR director is concerned that the recommended budget is too low and believes that, in order to remain competitive and compensate for inflation, the increase should be 30%. The country director brings her concerns and recommendations to the global VP of HR.
In a discussion with the global VP of finance and the global functional leaders, the global VP of HR learns that the 18% increase budget is a stretch and that going any higher will have a negative bottom-line impact.
Which action should the country HR director recommend that country leaders take that would proactively support a union avoidance strategy?

A. Tracking employee engagement scores, looking for and addressing the issues as they arise
B. Instilling a culture of trust and teamwork between employees and management
C. Ensuring that managers are trained to implicitly communicate the negative impact of unions
D. Conducting a communication campaign to remind employees of the growth-stifling impact of unions

Answer 1

The country HR director should recommend instilling a culture of trust and teamwork, tracking employee engagement, and training managers to implicitly communicate the negative impact of unions to proactively support a union avoidance strategy.

Step-by-step explanation:

The country HR director should recommend that country leaders instill a culture of trust and teamwork between employees and management in order to proactively support a union avoidance strategy. By fostering positive relationships and open communication between employees and management, the company can create an environment that discourages unionization. This can be achieved through initiatives such as team-building activities, regular feedback sessions, and transparent decision-making processes.

Additionally, tracking employee engagement scores and addressing any issues that arise can also help prevent the formation of unions. By actively listening to employee concerns and taking action to resolve them, the company can demonstrate its commitment to employee satisfaction and potentially mitigate the need for union representation.

It is important for managers to be trained to implicitly communicate the negative impact of unions on growth and productivity. By educating managers on the potential consequences of unionization, they can effectively communicate the benefits of remaining union-free to their teams and discourage support for unions.