Case Study Compensation related questions

1. How much turnover is too much?

A turnover rate of 1 to 10% is ideal, but more than 15% each year is considered poor.
2. What is causing the turnover at Carewood Customized Carpentry?
The main issue was that the employees were dissatisfied with their salary and felt that they
were being treated unfairly. Such as the warehouse employee are being paid less and other
department paid more. There was also a lack of sufficient training for the staff in terms of
material and production.
3. Did pay cause the interdepartmental issues or did interdepartmental issues cause the pay
problems?
Interdepartmental issues cause the pay problems. Manufacturing department has best
equipment, getting more pay scales.

4. How is pay determined? What is fair?

Pay is Determined the budget for each function, as well as the value of each person based on
effort, experience, and education. Market pay is calculated by comparing pay rates for similar
jobs in similar industries in the same area. Fair compensation: Organizations determine pay
by examining the relationship between various professions and the skills required to do the
job, ensuring that employees are paid fairly.
5. What are the consequences of poor internal equity?

According to Carwood Customized company the consequences of poor internal equity of

employee perception. The old employee thinks that new coworkers make a quality door with
training and that’s why old coworkers moved into housing industry

6. What are the consequences of poor external equity?

Consequences of poor External equity of employee treated in the same way as employee in
the job but at completing Organization

7. How can pay grades help prevent internal equity problems?

1:To pay fair pay
2:Compare employee who do similar jobs

8. How can pay grades help prevent external equity problems?

 Pay equity includes issues relating to the fairness of compensation paid by employers to
individuals or groups of employees. Pay grades help prevent equity problems such as The
Equal Employment Opportunity Commission's compliance manual, compensation
discrimination, notes that "pay disparities persist between workers in various demographic
groups." The pay grade scale is help the best option is to maintain balance when focusing on
external motives. A structured and clear benefits plan could limit confusion over the worth
and value of employees. 
9. Are the assembly technicians overpaid? If so, how or why did this come about?

The assembly department utilizes the Jig system to assist with their jobs. Managers describe
how jigs save time, eliminate damaged products and eliminate waste.
10. Is the number of terminations by department equal to the number of hires?

New hire turnover rate as the number of new employees who leave within a year. Turnover
rates can vary widely across industries. Usually, hospitality and healthcare have the
highest turnover rates.