Human Resources Certification Institute (HRCI) Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Ace your HRCI certification with our comprehensive practice exams. Featuring detailed questions with hints and explanations, our tests are designed to prepare you thoroughly for your big day.

Practice this question and more.

Increasing field employee pay to the 90th percentile of the midrange market wage is an example of which risk management strategy?

Mitigation
Avoidance
Acceptance
Transference

The correct answer is: Mitigation

Increasing field employee pay to the 90th percentile of the midrange market wage is an example of mitigation as it aims to reduce the risk of losing valuable employees to competitors who may offer higher wages. Option B, avoidance, would involve completely avoiding the risk by not increasing wages at all, which may not be practical or feasible. Option C, acceptance, would involve accepting the risk of losing employees and not taking any action to address it. And option D, transference, would involve transferring the risk to another party, such as outsourcing the field employee jobs to a third-party company. However, this option may not address the root cause of the risk and may not be the most effective strategy in this scenario. Therefore, A is the most appropriate answer given the context of the question.