Bargain Laborers Case Study

Wiggleman’s currently exhibits a human resource strategy known as “Bargain Laborers.” Under this strategy, there is an emphasis on efficiency and a pattern of buying talent. For example, the company has “high levels of turnover” with a “large number of new hires each year”, which highlights the firm’s external labor market orientation. Furthermore, Wiggleman’s dependence on buying talent is evident in their hiring practices. They employ many temporary workers, many of whom are “students currently in school or seeking to return to school.” In this company, workers have a transactional relationship with management and the existing compensation system along with its emphasis on “fair” pay at a minimum level is consistent with the measures outlined in the “Bargain Laborers” strategy. Furthermore, the company utilizes a low cost business strategy, which is also aligned with the human resource strategy mentioned above.

2.
As Wiggleman’s tries to maintain its current low pay …show more content…
Employees focus on more than just the pay level (salary and benefits), they also care about its allocation (pay mix). Furthermore, different employees have different perspectives and sources of motivation regarding pay mix. For example, a worker with a young family will value health insurance benefits more than a student worker. Therefore, it is incorrect to say that by “only giving base pay increases”, all employees “will be very happy, regardless of the rest of the compensation package”. Besides base pay, many people value the different benefits that the company provides. In conclusion, management has to increase the transparency of the entire compensation system and promote clarity and fairness because they represent more than “just details” for individual