Evaluating a Hiring and Variable Pay Plan
Evaluating a Hiring and Variable Pay Plan
Include a brief summary of the situation.
Effective Management Solutions (EMS) a small management consulting company divided into four areas: management systems, business process improvement, human resources, and quality improvement that are rapidly growing. The growth has expanded so quickly that, EMS has developed and is planning to execute an aggressive revenue growth plan. The goal is to obtain a 25% revenue increase each year for the next five years, in each of the four departments. A main element of this plan is growth in the staff. The reason for this is that the majority of the entry level associates are currently working at the maximum load of hours and clients.
To accomplish this plan EMS predicts it will have to hire 100 associates of which 40 will be for replacements do to promotions, and associates who leave and go to other consulting firms. The additional 60 will cover growth with the new revenue increase plan. Knowing this will be a challenge and that the current hiring package needs to be updated to attract and keep good quality associates, EMS has tasked Manuel Rodriquez who is the one-man HR department to develop a job offer proposal, that will increase the offer rate, decrease the turnover rate of current associates and not create issues among the associates who are currently employed.
Assess the attractiveness of the HVP program for both applicants and those who receive offers, deciding for whom it would be the most attractive.
The hiring variable plan will be very attractive to both pools of people. And for applicants it would more then likely increase of even applying. And for those who receive offers it would at least bring the company on par with its top competitors and increase the number of accepted job offers. More than likely it will be most attractive to those receiving offers because if all other factors are equal with the company’s competitor’s candidates will be more likely
Include a brief summary of the situation.
Effective Management Solutions (EMS) a small management consulting company divided into four areas: management systems, business process improvement, human resources, and quality improvement that are rapidly growing. The growth has expanded so quickly that, EMS has developed and is planning to execute an aggressive revenue growth plan. The goal is to obtain a 25% revenue increase each year for the next five years, in each of the four departments. A main element of this plan is growth in the staff. The reason for this is that the majority of the entry level associates are currently working at the maximum load of hours and clients.
To accomplish this plan EMS predicts it will have to hire 100 associates of which 40 will be for replacements do to promotions, and associates who leave and go to other consulting firms. The additional 60 will cover growth with the new revenue increase plan. Knowing this will be a challenge and that the current hiring package needs to be updated to attract and keep good quality associates, EMS has tasked Manuel Rodriquez who is the one-man HR department to develop a job offer proposal, that will increase the offer rate, decrease the turnover rate of current associates and not create issues among the associates who are currently employed.
Assess the attractiveness of the HVP program for both applicants and those who receive offers, deciding for whom it would be the most attractive.
The hiring variable plan will be very attractive to both pools of people. And for applicants it would more then likely increase of even applying. And for those who receive offers it would at least bring the company on par with its top competitors and increase the number of accepted job offers. More than likely it will be most attractive to those receiving offers because if all other factors are equal with the company’s competitor’s candidates will be more likely
References: Heneman, H. G., & Judge, T. A. (2009). BUS 335: Staffing organizations: 2009 custom edition (6th ed.). Boston, MA: McGraw-Hill.