My full name: Nguyen Duc Viet Anh

ID: 1604459

Class: HRM 4481 IHFA

Professor: DR. John Haymore

Discussion Question 1

Securing and keeping top personnel is crucial for businesses looking to maintain their competitive

advantage and guarantee long-term success in the fiercely competitive business environment. In my

opinion, the firm's ability to provide only average pay can affect the success of its staffing strategy of

acquiring the best talent possible in several ways.

1. Unsatisfactory Wages and Benefits:

High employee turnover is often due to inadequate pay and benefits, rising costs, and financial

strain, leading employees to seek better opportunities elsewhere. Companies must prioritize

wages and benefits to reduce employee turnover, as undervalued employees seek new

opportunities, increasing costs in replacements.

For example: Vietnam's Vinamilk, a leading dairy company, faced employee turnover due to

insufficient pay and benefits. To address this, the company implemented a comprehensive

strategy including salary adjustments, improved benefits, and professional development

opportunities, reducing turnover rates and boosting job satisfaction.

2. Difficulty Retaining Top Performers:

 Insufficient compensation hinders employee retention, especially top performers with alternative

employment opportunities. Maintaining industry standards is crucial, as underpaid employees are

more likely to seek better opportunities elsewhere.

For example: Google's comprehensive benefits package and competitive compensation strategy

play a crucial role in attracting and retaining top talent. The company offers some of the highest

average salaries in the industry, recognizing the importance of financial incentives in securing

exceptional employees. Beyond monetary rewards, Google's mission-driven culture and its

renowned motto, "don't be evil," resonate with potential and existing recruits, further enhancing

the company's appeal as an employer.

3. Decreased Employee Motivation:

Undercompensated workers may experience a decline in motivation and level of engagement at

work. Reduced creativity, decreased productivity, and decreased job satisfaction may result from

this.

For example: Starbucks, a renowned coffeehouse chain, has implemented innovative programs

like the "Bean Stock" initiative. Through this program, eligible employees receive stock options

as part of their compensation package. This approach instills a sense of ownership and motivation

among employees, encouraging them to excel in their roles and contribute to the company's

overall success. By sharing the company's achievements with its employees, Starbucks cultivates

a culture of collaboration, dedication, and long-term commitment.

In conclusion, organizations must evaluate pay strategies and align them with industry norms and top

candidate expectations to secure top talent. A well-structured pay strategy considering market

competitiveness, individual performance, and employee value is crucial for building a strong workforce.
References
Collegenp. (2023, May 11). Retrieved from Unlocking Employee Motivation at Starbucks: Strategies and
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Dam, K. (n.d.). kand.io. Retrieved from Common Causes of High Attrition that Employers Can Avoid:
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%20underpaid%20or%20undervalued%20may%20be,money%20to%20replace%20the
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EUROPEANCEO. (n.d.). Retrieved from Secrets of Google’s talent retention success:
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success/
Hively, A. (2024, January 16). confirm. Retrieved from How To Identify and Retain Your Top Performers:
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