Absolute Free SHRM-CP Exam Practice for Comprehensive Preparation 

Which initial step should an HR director recommend to best support a global pay-for-performance initiative?

A clothing retail company with three locations in a popular beach resort area has been in business for over three years. There are two similar retailers in the same beach town competing for the same customers and labor pool.

Recently the company has had extensive growth due to a new clothing design. Despite the growth in sales, their turnover is high. Employees do not stay longer than 90 days, as the competition is enticing sales staff away. Turnover is now affecting their customer satisfaction and increasing the workload on the remaining staff.

Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness.

Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to search and find a new supplier to provide new employee orientation for all new sales staff. Twenty companies have submitted requests for proposals, and the CEO wants a short list to be presented in the next two days.

An applicant from a local competitor has offered to give the HR director information on the previous employer's salary and benefits upon hire. What action should the HR director take in response to this offer?

A vice president (VP) of HR has responsibility for multiple manufacturing sites and is responsible for teams of HR managers and generalists that support each location. All locations operate seven days a week, 24 hours a day. These teams cover all shifts, providing support. Each location is in the process of rolling out updated policies, including enhancements to the company's progressive disciplinary process and an ethics policy that focuses on commitment to mutual respect, ethical decision making, and integrity.

One day, after the VP of HR has left her office, she receives a call from a site HR generalist. The generalist tells the VP that when he returned from his dinner break, the HR office appeared to have been ransacked. Books were thrown on the floor, and name tags were torn off doors and thrown into the trash. The generalist also reports that when security checked the cameras, they reached the conclusion that the site HR manager had done the damage and then had left the facility.

The VP knows that the site HR manager has a volatile personality and has been counseled about it previously. The VP also has recently discovered that the manager has been drinking routinely after work and wonders if the ransacking of the office occurred when the manager returned to the office after a drinking session.

The following day, members of the HR team separately contact the HR VP with concerns about the incident. Which action should the VP take address the concerns of the HR team?

An HR vice president briefly reviews the company's employee performance scores and relevant compensation increases over the past four years. The data reveals a .7 correlation between performance scores and salary increases and a significance level of less than .05. Additionally, the HR VP finds that the use of personal days increases by 30% around the annual performance review time and production falls by 5%.

Over the past three years, there has been a steady decline in profits and employee morale. Employees seem less engaged, and both the voluntary and involuntary turnover rates are currently 15 percentage points over the industry average. The senior team asks HR if there is any correlation between the performance scores, decreased production, and employee engagement. As the HR VP is conducting a cursory review of the current performance management system and analyzing the data to make recommendations, the CEO asks the HR VP to increase all salaries by 4%, citing the correlation between salaries and performance as a rationale.

The next week, at the weekly management team meeting, one of the senior leaders states that at her previous company the employees were 80% engaged, and she suggests using the same number as an engagement benchmark. The CEO likes this number and asks the HR VP to put a plan in place to meet this engagement number. Another senior leader suggests to the HR VP that the company should prohibit the use of personal leave before, during, and after the review period.

How should the HR VP respond to the CEO's request to use a benchmark figure of 80%?