A company in the rock and sand business has experienced significant growth because of the federal support for building and improving roads and highways. It began as a small local company and over the years has expanded by acquiring other small$-$ to medium$-$sized companies in the same or related fields. After acquiring ten smaller companies, the company has become a large parent company with numerous challenges centering on HR issues. In the beginning, there was an urgent need to focus on providing newly acquired companies with the necessary information that allowed each company to retain its own HR systems, payroll, policies, and procedures. However, after acquiring so many small companies and allowing each to operate according to its own policies and procedures, the parent company has decided that it is time to reorganize and consolidate these disparate HR systems into one. This decision is made in order to be more efficient and to improve the parent company$$s bottom line. However, it also results in changes in some of the smaller companies$$ policies that have a direct impact on the employees. In one instance, the vacation and time$-$off policies are changed so that employees receive less time off and paid vacation than they had with their former company. These changes are not addressed by the leadership of the parent company, and managers are left to handle the complaints from disgruntled employees.

Which is the best way for the parent company to handle different compensation levels between its smaller companies?

Answers

Have HR develop a plan to even out the differences.

Pay everyone at the higher rate.

Pay everyone at the lower rate.

Do not change the compensation levels but explain to everyone the reasons for the differences.