SHRM Senior Certified Professional (SHRM-SCP) — Question 5

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 communicate the new pay increase to current entry-level employees?

Answer options

• A. Send an email to supervisors of impacted employees requesting that they explain the change to their direct reports.
• B. Hold in-person group meetings with impacted employees to announce their increased pay.
• C. Send a mass email to all impacted employees explaining the pay increase.
• D. Schedule a meeting with each impacted employee to communicate the pay increase and rationale.

Correct answer: B

Explanation

The correct answer is B because holding in-person group meetings allows for direct communication and immediate feedback, fostering a sense of transparency and engagement among employees. Options A and C lack personal interaction, which can lead to misunderstandings, while option D, though personal, could be inefficient for larger groups, making it less practical.