Reference no: EM133044719

Company A and Company B are both in the cleaning industry, providing cleaning services to private residential estates and mid-sized commercial buildings. Both companies are experiencing high staff turnover rate and are trying to find ways to retain their employees. 

It is found that Company A recruited its employees using out-dated job descriptions and did not assess their applicants on their prior cleaning experience and skills. The new recruits are deployed into jobs that needed immediate replacement due to the shortage of cleaning staff. There is a lack of training provided to the new recruits in understanding their job scope and the usage of cleaning equipment. There is an underlying issue that the new recruits were given starting pay equivalent to existing cleaning staff who have been with the company for more than 3 years, in the same job scope. This led to the resignation of cleaning staff with experience to other cleaning companies paying better pay packages in recognition of their experience. The new cleaning staff are inundated with work due to the shortage of manpower and doing work beyond their skillsets, even though the pay package was attractive to them. 

Company B, on the other hand, has a proper organisation structure with clear job levelling to recognise the different skills-sets of its employees. The new recruits are assessed on their skills and cleaning experience with deployment into positions which they are trained to perform at their job. The company believes in providing training and development opportunities to its staff, however with the compromise of a competitive pay structure. The company is able to attract people to join them. However, the tenure of employment usually does not last more than 2 years. With the high demand of cleaning services during the Covid-19 pandemic, many medium to large-sized cleaning companies are offering competitive pay package to those with cleaning experience and with relevant skills to operate advanced cleaning equipment. 

2 (a) Evaluate the impact of the Covid-19 pandemic on the two companies and discuss the compensation issues that could have led to high staff turnover. 

2 (b) Recommend ONE (1) compensation policy and ONE (1) technique that can be applied to each of the company in addressing the compensation issues.

NOTE:

Kindly do NOT provide answers in point forms

Cite any reference used for your answers

REFERENCE: Gerhart, B., & Newman, J. M. (2020). Compensation (13th ed.). McGraw-Hill.