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Compensation and Turnover Rates in a Company

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Managers in the finance department believe that the compensation for accounting professionals is below market. They believe this is the cause of high turnover rates in the department. Describe how you would construct a study to test their hypothesis. What data will you need? How will you get it? What type of analysis will be required?

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The following posting discusses compensation and turnover rates in a company.

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HRM Research Question:

Managers in the finance department believe that the compensation for accounting professionals is below market. They believe this is the cause of high turnover rates in the department. Turn over rates in the department is defined as the rate at which the new employees stay in the department before they leave their jobs within the organizations. Negative turn over is the rate at which the departments loose employees while positive turn over is the rate at the department gets new employees (Yee-Melichar et al, 2011).

To test the hypothesis stipulated by the managers of the finance department a study will be conducted through following a number of processes. This process involves defining the research of the hypothesis and stipulating the basis of the study to be conducted. Then the mode of operation to carry out this study is defined i.e. the variables to studied is stipulated. The variables in this case are given by studying the turn over of employees and also studying the reward systems for compensating the accounting professionals. This ensures that a constructive conclusion is drawn from ...

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