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MBA 533 – Motors and More HR ProjectAdditionally, Motors and More needs to “offer a competitive benefits package that fits your employees’ needs. Providing health insurance, life insurance and a retirement-savings plan is essential in retaining employees” (Employee retention, 2008). The benefits to retention are reduced turnover, which is costly, and increased productivity, which is critical now that Motors and More must significantly increase output. Because it is ultimately unknown how a new employee will work out it is vital to the company's short- and long- term success to retain their top employees.With the large amount of recruiting Motors and More must do they need to assess the effectiveness of their recruiting efforts. It is first necessary to examine whichrecruiting method resulted in the most hires, as well as which was most cost effective. Motors and More may also look at the number of applicants who are offered a job, the number that accept the job, and the recruiting methods that result in the best quality applicants. Then from a HR perspective, Motors and More could utilize a wide lens approach and track “(1) the length of time between opening of the job posting to interviewing the qualified group, (2) the timeliness of the Hiring Managers feedback, (3) Aging of requisitions, (4) Initial Presentation to interview ratio, (5) interview to offer ratio and (6) offer acceptance rate" (Caswell, 2015).15
MBA 533 – Motors and More HR ProjectCompensation PlanMotors and More current employee compensation plan lags behind other businesses in the area, causing a higher than normal turnover of employees. Motors and More will need to be aggressive in their compensation package to normalize their turnover rate. Bean-Mellinger (n.d.) asserts that organizations do not have to be the highest paying company in town, but by offering employees low compensation the best employees will leave and poor performing employees will remain. By implementing the pay and benefits plan outlined below Motors and More can aggressively meet those benefits offered by other employers in the local market while remaining competitive within their industry. A good benefits package, which includes health, retirement and paid time off, helps recruit and retain quality employees. Offering these benefits may also be advantageous to Motors and More in regard to corporate taxes.Pay is the employees biggest benefit and although flat pay works well when teamwork is required, flat pay does not "encourage an experienced, efficient, and satisfied workforce" (Ivancevich & Konopaske, 2013). Also, flat pay does not reward employee’s work ethic or seniority (Ivancevich & Konopaske, 2013). So, in addition to flat pay, Motors and More should consider multiple different pay methods to reduce turnover and increase quality and productivity.