SHRM Senior Certified Professional (SHRM-SCP) — Question 4

A large retail company opens a distribution center directly across the street from a small competing firm's distribution center and posts a sign advertising open entry-level positions. The plant manager of the small firm notices that the sign indicates the advertised salary is higher than what the firm pays its entry-level employees. The plant manager is concerned employees will leave the firm to seek work at the competing company. The plant manager notifies the HR manager of the pay differences and requests immediate pay matching for all entry-level employees. The HR manager sets up a meeting with the plant manager, compensation manager, and HR business partner to discuss the issue. They decide to increase base pay to match the competitor's base pay but only for a subset of entry-level roles identified as critical. They also decide to put the pay increase into effect immediately, and the HR manager agrees to monitor the situation over the next three months.
How should the HR manager analyze the impact of the pay increase on entry-level employees over the three-month period?

Answer options

• A. Set up interviews with entry-level employees to identify factors responsible for the retention of current employees.
• B. Track whether conversion rates from applicant to employee increase for entry-level positions.
• C. Track online reviews about the company by employees and candidates.
• D. Administer a job satisfaction survey to compare responses of employees who satisfy their pay and those who did not.

Correct answer: D

Explanation

The correct answer is D because a job satisfaction survey will provide direct insights into how the pay increase affects employee morale and retention. Options A and C focus on indirect factors, while B measures recruitment success rather than employee satisfaction with pay.