Question

1. Management and the union have been bargaining for more than 10 months to try and reach a new collective agreement, to no avail. From Management’s perspective, they believe that the parties have reached an impasse. What are the 3 options management can pursue to try and resolve this situation (3 points – ½ point for each of the 3 options, ½ point for correct explanation/definition of each option)

2. What is indirect compensation and explain why it is an important component of an employer’s compensation program. Include in your answer 2 examples of ‘indirect compensation’ (3 points)

3. What is the purpose/objective of orientation/onboarding programs and identify 4 benefits frequently reported by employers of such programs? (3 points - 1 point for correct explanation of purpose/objective and ½ point for each correct benefit identified)

Answer 1

1. Management and Union have not been able to reach an agreement after 10 months of negotiation. These are the options available before the management to resolve the issue.

• Acquiesce - to the last set of demands put forth by the Union in the interests of time and close the issue. This could be done if it is imperative to move forward and further time lost in negotiations is hampering business adversely
• Finalize - Propose a final resolution plan which takes into account an incremental set of demands from the Union and wait for the response. If the response is favourable then the matter is closed otherwise the next step is to go with the Acqueisce or Legal Options as discussed
• Legal - Both parties feel that the demands are untenable and not in each others' best interests then the only option is to take matters to a legal arbitration

2. Indirect compensation refers to any non-monetary compensation made by the employer to an employee as part of the work contract. This may be quantitative and tangible or intangible in nature too. This is an important part of the compensation structure because it contributes to the overall economic and physical well-being of an employee and results in greater motivation over a long term. It also allows the employer to be seen as tking care of the staff in a holistic manner. Some of the most common examples are Medical and Life Insurance for the employee to take care of emergencies. Prepaid Vacation at a location of employee's choice for employee and family etc.

3. Orientation/Onboarding programs are initiatives taken by the employer, typically through the HRD Team, to formally induct a new employee into the regular systems and processes of an organization and it's day-to-day running of operations across all its functions. It is done to ensure that an employee is aware of the overall operations of the company and the context of his own funcation and department therein. This helps give the employees basic ideas on how he will go about doing his daily work.

Some of the key benefits of doing a good onboarding program are:

• New Employee Engagement - ensure the new employee is occupied till he settles in
• Build Trust and Alignment - with peers, supervisors, support staff
• Employee Mentoring - from supervisors, seniors
• Cultural Assimilation - into the organization and its values