Motors and More is headquartered in a small southern town of 28,000 people, with a low unemployment rate of 3.1 percent. This means that demand for workers exceeds the labor supply. There is a technical school and a community college within 50 miles of Motors and More. Motors and More's president is former military and is highly patriotic. He is committed to staying in the community. Recently, several other local companies have experienced labor organizing activities. Motors and More employs 116 people. Until you were hired, there was no HR department. Recently, the organization's employee turnover rate has been higher than normal. The marketing and sales department continues to sell products to an expanding market. Because of this increased product demand, output must be increased by 96 percent.ighty-eight percent of Motors and More employees are Caucasian. With the exception of one female supervisor in the customer service department, the president and all other managers are Caucasian men. Management promotions have been based on seniority. The local labor market population is approximately 48 percent minority. There is a growing Hispanic and Kurdish population that have not been accepted into the community.
All the employees in manufacturing (including quality control), customer service and operations (responsible for shipping and receiving; distribution of raw materials, components parts and finished goods inventory; and maintenance and cleaning) have at least a high school degree or GED. The organization provides some skills training courses.
Develop a progressive yet competitive compensation plan that will support recruiting and retention efforts and lower the employee turnover rate. Traditionally, Motors and More has provided employees minimum wage and benefits.
How does Motors and More's employee compensation compare relative to other organizations in the area? Will the organization meet, lead, or lag the local market? Explain your rationale.
What benefits will you offer? Include constitutional benefits. What are the costs of those benefits? What is the rationale for offering those benefits?
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