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Question 67 of 100
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Q67 Single choice

A team manager at a large consulting firm expresses concerns to the team director and HR manager that turnover among junior-level staff is high. The loss of junior-level staff is impacting the ability of senior staff to efficiently and effectively meet client needs. As a result, senior staff are hesitant to take on new projects, impacting the firm's overall revenue. The team director asks the senior staff their opinions as to why turnover among junior-level staff is so high. Senior staff agree the primary reason is that junior-level staff are underpaid. To mitigate this issue, the team director suggests to the HR manager that junior-level staff be paid retention bonuses after their first, second, and third years of employment. The team director asks the HR manager's opinion as to whether this is likely to be an effective solution and how a new bonus system would influence overall organizational functioning.

The HR manager determines that implementing retention bonuses is likely to decrease junior-level staff turnover.

Which should the HR manager do to determine the potential effects of a new bonus system on overall organizational functioning?

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