Problem: As VP of HR at the Good Eats Company (a distribution center for a major food market - the owners are very wealthy!), you are experiencing turnover problems with the employees who select items to be packed and shipped to different customers (food markets). The plant manager has asked you to take the lead in fixing the problem. Your budget allows you to engage some outside assistance, and you have asked the pre-imminent firm HR consulting firm of Marsh & Marsh LLP to meet with you and study the problem.
While your primary emphasis might be on having a competitive base pay, you need to decide if there is anything you can do in the incentive department. Before you can make these decisions, what information would you like about
(a) pay (base + incentive) at major competitors,
(b) the nature of the turnover, and
(c) next year's labor budget.
Explain your answers.