FAQs




  Modules Will a low offer during Labor Negotiations affect Turnover and Productivity?

Actually it is not the strike itself that drags down productivity and increases turnover. It is the difference in future rounds between the best in the market and your contract. Put simply, if workers can get more someplace else, they are more likely to leave. You can compensate with recruiting, training and low overtime, but you always pay some penalty for being below the Industry Best. Of course, a strike is a symptom of the same discussion point.

Turnover goes up by 1% for every dollar difference between your wages and the Industry Best and (if the HR Module is activated) Productivity falls by 0.5% for every dollar difference between your wages and the Industry Best.

So, for example:

  • If your turnover were 3% without the spread in wages, it would be 4% with a dollar difference;
  • If the HR Module is activated, and your productivity were 110% without the spread in wages, it would be 109.5% with a dollar difference in wages.