Case Study: A Turnover Issue in an IT Company

An IT company had a serious problem of high turnover in the past year. The executive team asked the HR department to submit a report of potential reasons and solutions to the problem. In the HR team meeting, Alice $($Compensation and Benefits Associate$),$ suggested that the current incentive plan might not be competitive enough, compared with other IT companies in the area. Alice wondered if the high turnover was a result of employees being not satisfied with their pay. Alice understood that the company had strict budget plans, and chances would be low to request the board for approval of increasing base pay. So$,$ she recommended adding to the benefits package, such as flexible working hours and options of working from home. She expected an improved benefit package would lower the turnover rate. Brian $($Training and Development Specialist$)$ thought the problem could be lack of professional development support, given that the routine employee training only includes newcomer orientation and leadership training. He found there was a need among the employees for upgrading IT skills to maintain competency in the field. Hence, providing employees with more training on that would help keep them in the company. Christina $($Recruitment Manager$)$ wanted to solve this problem in the recruitment stage by adding to the selection tests questions of to what extent an individual feels interested in IT jobs. Christina$$s theory was that if the company was not able to provide sufficient extrinsic motivation to the employees, such as better pay or benefits, it might be better for the company to select candidates who are more intrinsically motivated by the job. Such individuals are supposed to be driven by interest, passion, and love in their work. As a result, they would be less likely to quit, even if the pay was not that competitive.

Please identify reasonable hypotheses according to the HR team meeting$$s discussion.

$$ Null Hypothesis $1$:

$$ Alternative Hypothesis $1$:

$$ What are the key variables identified in this relationship?

$$ Null Hypothesis $2$:

$$ Alternative Hypothesis $2$:

$$ What are the key variables identified in this relationship?

$$ Null Hypothesis $3$:

$$ Alternative Hypothesis $3$:

$$ What are the key variables identified in this relationship?