Question

Based on the data you found using the Cost of Living Comparison Calculator on the Bankrate website (or another tool of your choosing), answer the following questions: 1.Which of the two cities you chose is more expensive? What is the difference in costs? 2.Would you expect an employee to need a raise to move to the more expensive city? In contrast, would you expect an employee to accept a pay cut to move to the less expensive city? 3.Would you use these calculators if you worked in the HR department of a company that asked employees to relocate for job transfers? Why or why not?

Answer 1

1. The city wherein bankrate is high that city would be expensive.

2. The difference in cost is due to difference in cost of living index ( i.e. groceries, housing)

3. Yes, If an employee is moving to an expensive city a hike in salary is a must in order to cover for expenses. This would mean that since the living expenses would be higher, an individual would need more money to maintain the same standard of living.

4. Only a satisfied employee can serve an organisation well. If an employee moves to less expensive city and his salary cut is done then he would be demotivated and will not be able to provide proper services to the organisation.

5. If I would have been in HR department I would surely look into these indicators as it would help me to keep the candidates happy and reduce the retrenchment rate of organisation and would keep the atmosphere healthy with each individual contributing to the organisational goals. I would always raise the salary of the candidate who would be moving to an expensive city and would not be changing the salary of the candidates moving to less expensive city.

Regards