Director of Compensation Challenges: Analyzing Scenarios and Creating Strategies

Scenario 1: Issues with Programming Staff

SCENARIO 1
You were hired three weeks ago as Director of Compensation for a thriving mid-sized high technology manufacturing company. The Vice President of HR, your boss, approaches you in your office and asks if
you have a few minutes to talk about something. Of course you say ‘yes,’ and enter her bright and spacious corner office with floor to ceiling windows and lots of tropical plants. After you admire her art work and aquarium, you ask her what’s on her mind. The VP tells you that she is concerned with what she has observed in the programming area. The staff is arriving to work late and leaving early; sick leave use is up; and turnover is increasing. She asks you to figure out what it would cost to raise all the programming staff salaries by 10%. She thinks that a raise will stop people from leaving.What questions will you ask the VP toassess her plan to address the problems in programming? If you determine the problem is not linked to salary, what advice will you give the VP to address the problems she had identified?
SCENARIO 2
One year later, you’ve solved the staff turnover problem, but you have a challenge of your own. You’re trying to figure out how to take some time off to spend with your spouse, who has just survived a majoroperation. The company comptroller shows up at your office ranting and raving about escalating benefit costs. He vents his concern to you about the ever-increasing number of parental leaves. He expresses grave concern that the parental leave top up – supplementary employment insurance benefits that the company agreed to in the past - will completely wipe out the company’s benefit budget! The comptroller confides in you that he feels that it is totally unfair that all these parental leaves are drying up the benefits fund and will leave him with a meager pension fund to draw on when he retires in 5 years. When you hear this, a light goes on! You have wanted to change the company benefits plan for some time now.What is your strategy to address the above situations? Explain fully what you need to do to make your plan work effectively and what pitfalls you should avoid.