Question

An organization is experiencing a problem with new hires for a specific position leaving the company within the first six to nine months. They previously had several long-term employees in this position, but those employees have retired.

The HR director performs research and determines that several of the employees have joined a competitor. The HR director decides to employ a third-party firm to conduct a salary survey and do a complete review of the job description and a job analysis for the position. Additionally, the HR director performs an internal employee opinion survey in which employees share their belief that the current benefits package lags that of other companies in the area. The results from the third-party survey confirm that the company is lagging the competitor by a large margin in terms of compensation and that the benefits package is no longer competitive.
The HR director recommends to the executive team that increasing pay and benefits is necessary to remain competitive in the market. They agree. Which action should the HR director take to determine if the organization is realizing benefit from the proposed solution?

A. Monitoring the employee departure rate to see if it declines in six months
B. Communicating to managers that a plan has been implemented to reduce departures
C. Conducting stay interviews with employees to periodically review benefit offerings and track retention rates
D. Reviewing the next cycle of performance evaluations to confirm whether goals are being achieved

Answer 1

The HR director should conduct stay interviews with employees to periodically review benefit offerings and track retention rates.

Step-by-step explanation:

To determine if the organization is realizing benefit from the proposed solution of increasing pay and benefits, the HR director should take action C: conducting stay interviews with employees to periodically review benefit offerings and track retention rates.

Stay interviews are one-on-one meetings with current employees to assess their level of satisfaction, gather feedback, and identify any concerns or areas for improvement. By conducting stay interviews, the HR director can directly engage with employees, understand their needs and preferences, and track retention rates to evaluate the effectiveness of the pay and benefits changes.