Free Online SHRM SHRM-SCP Practice Test

A biotech seed company has grown by acquiring smaller brands to become the largest firm in the country offering genetically modified grains. The company is now composed of a national brand and 12 regional brands. Over the past five years, the company has invested a large portion of its profits in new research. To recoup its investment, company executives have established steep sales revenue and operating profit goals to support aggressive earnings forecasts. Although revenue has increased consistently for the last five years, neither sales nor profits are meeting expectations to sustain new product research. Tensions are high, because the brands were competitors prior to being acquired and employees are fiercely loyal. In addition, the aggressive sales goals have led to increased complaints of ethics violations by the sales staff. Company executives task the VP of HR with leading a project to redesign the sales incentive plan to increase market share, customer loyalty, and internal collaboration between the different brands. The project team consists of senior sales executives, HR business partners, and business and financial analysts from the national and regional brands.

Which action should the VP of HR take to ensure that the project stays on track and barriers to success are removed?

An electronics/aerospace manufacturing organization specializing in drone development for the movie industry has been in business for 15 plus years. The company has just over 1,500 employees. It has sustained double-digit growth for the past four years and owns 80% of this specialized market. Based on this growth, employees have received on average a 6% increase, exceeding local wage increase rates.

Over the past year, the employee turnover rate has increased. A majority of employees who voluntarily exited the company had received exceptional performance reviews. While there is a new competitor in the market, the competitor's starting pay rates are very similar.

A recently hired HR manager reviews the exit interview data. The review identifies a perceived inequity in how disputes are resolved and the distribution of privileges, job duties, and performance rewards. Additionally, decreased attendance at company events indicates low engagement. The CEO believes strongly that good performers are leaving because competitors are "stealing" them; he does not believe that employees are leaving because of poor engagement. The CEO states that decreasing unwanted turnover is an immediate priority and directs the HR manager to increase entry salary rates to increase competiveness.

In addressing the increased turnover, what is the first action the HR manager should take?