Worldatwork CECP Exam - Topic 2 Question 66 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 66
Topic #: 2

[All CECP Questions]

Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?

AImplement the merit increase budget as is because the anticipated financial obligations have made it necessary

BMeet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

CGather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

DRecommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Show Suggested Answer

Suggested Answer: C

by Kerrie at Aug 24, 2024, 09:36 PM

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Theola

4 months ago

Implementing as is seems risky with all the talent concerns.

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Nell

4 months ago

Gathering perspectives sounds like a solid plan.

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Marguerita

4 months ago

Not sure if cutting headcount is the best move...

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Jade

4 months ago

I think we should push for a larger merit increase. Losing talent is costly!

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Glory

4 months ago

15% increase in net income is impressive!

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Hildred

5 months ago

I recall that sometimes gathering stakeholder perspectives can lead to better solutions. Option C seems like a safe way to address everyone's concerns.

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Alfreda

5 months ago

I practiced a similar question where we had to consider long-term impacts on talent retention. I think option B makes a strong case for that.

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Hildegarde

5 months ago

I'm not entirely sure, but I feel like option B could be risky. If we push for a larger budget, it might not go over well with Finance.

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Romana

5 months ago

I remember discussing how important it is to balance financial constraints with employee morale. I think option C might be the best approach.

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Zona

5 months ago

I think Option C is the way to go. Bringing all the stakeholders together to find a compromise solution is the best way to address everyone's concerns. It'll take some work, but it's the most thoughtful and strategic approach in my opinion.

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Bulah

5 months ago

Okay, let's see. Option A seems like the easy choice, but I'm worried it won't address the concerns of the line managers. Option B could work, but I'm not sure Finance will go for it. Option C sounds like the most balanced approach, but it might be tough to get everyone on the same page. Hmm, this is a tricky one.

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Maryann

5 months ago

This is a tough one. There are a lot of factors to consider, like the financial obligations and the risk of losing top talent. I'm not sure which option is the best, but I'll need to really analyze the pros and cons of each approach.

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Clarinda

5 months ago

I'm leaning towards Option B. The long-term cost of losing key talent is probably higher than the short-term savings from the smaller merit increases. I'd make a strong case to Finance and see if we can get a bigger budget. It's a risk, but I think it's worth it to retain our top performers.

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Gwenn

6 months ago

Security Incident, huh? I'm pretty sure I covered that in class. Let me see if I can remember...

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Vivan

1 year ago

I'm with Huey on this one. Option D is just ridiculous. What is this, the hunger games?! We need to keep our people happy, not start a culling.

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Pearlie

1 year ago

B) Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

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