If I were to be an HVP program applicant it would be an attractive option for me as it provides flexibility in choosing the plan which would best suit my needs. Along with this the plan can be altered every two years which allows for better adaptability to individual needs. As every individual needs differ from each other, similarly, an individual’s preference for the kind of HVP program would differ as well. For instance a fresh college graduate who wants to take risks and maximize his salary might opt for the high risk plan; whereas, a person who has a family and wants security and predictability may go for the standard plan. On the other hand a risk-averse individual might chose the low risk plan which ensures predictability.
As a first time candidate for an offer receiver I would select the standard plan as it would give me some form of security during the learning process. Furthermore, it this plan will be a form of motivation for me because it would allow me to earn a bonus alongside the learning process.
Q.2. Will the HVP program likely increase the job offer acceptance rate? Why or why not?
The HVP program is likely to increase the job offer acceptance rate as it offers competitive packages as compared to the more established consultancy firms in the market. The flexibility of these packages and the option of changing plans as suited to the employees needs is an added attraction for people to accept the jobs. Furthermore, the offer of hot skills premium will increase the chances of the firm to hire candidate who have critical skills and are scarce in the market. Moreover, the increase in job offer acceptance rate could be because the standard plan allows people to learn without giving them stress about bringing in new clients. As the main focus would be on retaining clients initially, the person can simultaneously learn the skills required in the trade. Consequently, once the person is well-versed about what is expected out if him he can choose an HVP program that best suits his needs and requirements.
Q.3. Will the HVP program likely reduce turnover? Why or why not?
Employee turnover is not only dependent upon monetary benefits. Hence, the HVP program can not alone determine whether employee turnover will be reduced or not. But the HVP program can contribute positively towards reducing turnover mainly because it gives the candidates freedom to choose a plan that best suits their requirements. This makes people believe that they have control over their future and gives them a sense of security. Along with this the compensation plans have an added bonus to them which allows for people to make more money and is another contributing factor towards reduction in turnover. Adding on, the HVP program allows for current employees to alter their plans and it is not restricted to new comers, which reduces the feeling of inequity and would help retain existing employees.
The critical factor which needs to be considered is that the HVP program cannot reap benefits on its own and other non-financial factors such as quality of work and nature of the job also determine turnover rates.
Q.4.How will current associates react to the HVP program, and why?
The possible reaction of the current associates could be a mixture of positive and negative feelings. This reaction is largely due to a lack of understanding of compensations plans. However, this reaction can be negated once employees are given education about the change and assured that they have the option of changing their HVP plan if they desire. On the other hand, there could be a group of employee which totally looks down upon this change as being an unfair advantage the newer employees have over the existing ones. However, there could be some people who are open to this change as it is going to help attract and retain talented associates.
The employees need to be accepting towards any positive changes that are brought about in the company at this time because they are faced with the issue of high turnover. Hence, for the goodwill of the company steps need to be taken to overcome this problem.
Q.5.What issues and problems will the HVP plan create for HR. For the hiring manager?
The greatest problem that will as a result of the HVP program implementation is that of greater complexity and coordination requirements which would result in higher costs. The HR department will also have to deal with the feelings of negativity amongst current employees and their opinions about the unfair advantage new employees are going to get. Therefore, the HR department will have to ensure that existing employees have a fair chance to voice their opinions and concerns. Along with this all the decisions made will have to be transparent so that there is no room for discrimination claims. Moreover, the old performance standard will have to be revised and the HR will have to adjust its practices as well.
For the hiring manager the selection process is going to be more critical as there is no room for hiring inappropriate employees. Since, the HVP plan does not allow for a probationary period or a choice to opt out. To conclude we can say that the manager will now have to devote more time in researching the candidate’s competencies to make sure they have the relevant knowledge, skills, and abilities.
Q.6.What changes would you make in the HVP program, and why?
The HVP program could allow current employees to switch their packages at the current salary levels this will show the employees that they are valued hence result in loyalty towards the firm. This could also be a strategy to ensure consistent performance from current employees and if things go well it could even improve performance levels.
Management could offer a “stay-on” bonus plan for employees which would incentivize workers to stay with the firm for a set period of time before qualifying for the bonus. This can be one way for the organization to reduce turnover rates.
For the new employees the firm could allow applicants to wait before they receive a formal job offer before opting for a HVP plan. The bonus plan should be based on some fair rating criteria such as an appraisal of employees by their managers to determine the bonus levels. Furthermore, employees could be given leverage to alter pay plans annually.
Heneman, H. G., & Judge, T. (2003).Staffing organizations (4th ed.). Middleton, WI: Mendota House ;.