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Worldatwork Exam CECP 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?

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Suggested Answer: C

Contribute your Thoughts:

Vivan
2 months 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 months 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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Renato
1 months ago
C) Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
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Pearly
1 months ago
A) Implement the merit increase budget as is because the anticipated financial obligations have made it necessary
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Ryan
2 months ago
I believe we should gather perspectives and find a compromise solution that works for everyone.
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Eleni
2 months ago
I agree with Maybelle, losing key talent will cost us more in the long run.
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Maybelle
2 months ago
I disagree, we should meet with Finance and argue for a larger merit increase budget.
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Huey
2 months ago
Option D is just crazy! Reducing the workforce to increase the merit budget? That's a terrible idea. We need to find a way to retain our best people.
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Margart
2 months ago
I think we should implement the merit increase budget as is.
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Anika
3 months ago
I'm leaning towards Option B. Losing top talent could be really costly in the long run, so we should push for a larger merit increase budget.
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Merilyn
2 months ago
I think we should definitely make a case for a larger merit increase budget to retain our top performers.
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Ceola
2 months ago
I agree, losing key talent could be detrimental to the company's success.
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Margurite
3 months ago
Option C seems like the best approach here. We need to get all the stakeholders together and find a compromise that works for everyone.
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Leanora
2 months ago
Reducing headcount may not be the best solution in the long term. We should focus on finding a compromise.
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Magda
2 months ago
I think meeting with Finance to discuss the importance of retaining key talent is crucial.
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Felix
3 months ago
I agree, we need to consider all perspectives before making a decision.
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