Human Resource Management
Case Study: Changing the Pay level at Eight Crossings
1) How did the change in pay level at Eight Crossings affect the ability to attract and retain a high-quality workforce? The change in pay level at Eight Crossings did not have any affect on the ability to retain the high-quality work force. The work force was grateful after CEO Maher explained the situation of why the pay level had to be cut. Maher could have done what many others would have done and outsourced his work but decided to bring the pay to the market rate. The employees were grateful for him deciding to stay committed to his work force in the US and since he is still paying the market rate the employees would not benefit by leaving so the pay level cut did not affect the companies ability to retain their workforce. The ability to attract the high-quality work force is still to be determined. At the moment Maher felt it would not given that he was receiving resumes from experienced transcribers who were looking for work. Only time will tell if the company will continue to attract the potential high-quality workers.
2) Do you think the company’s pay structure was better suited to its objectives before or after he reduction in the pay level? Why? I believe that the company’s pay structure was better suited to its objectives before the pay cut because the pay varied on the complexity of the job but also giving more motivation for the employee to get more work done because of receiving on average a 5% bonus per assignment. Being that Maher was still seeing profit this is an effective way of attracting the best-qualified workers and retaining them. As long as the company was gaining I see that the pay structure was better suited for its objectives before the pay cut. Since the pay was varied from the complexity and length of each assignment, the more skilled or the employee, which took on tougher task, will receive higher pay,...
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