Business Case Scenario

1. Review the Rex Technologies, Inc. case study scenario

Business Case Scenario: Rex Technologies, Inc.

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Rex Technologies, Inc. is a privately-held technology firm. Founded as an “Internet of Things (IoT)” device manufacturer with just 10 employees, Rex has grown rapidly by providing secure IoT devices focused on machine-to-machine (M2M) communication and automation to large production facilities and operations for businesses and government, enabling more efficient operations and cost savings.

Headquarters in Boston, MA with 254 employees.
Small satellite locations in New York, NY; San Francisco, CA; Atlanta, GA; and Houston, TX. Each with approximately 30 employees, most of which support sales and customers service.
Year 1: $14M
Year 2: $31M
Year 3: $45M
Year 4: $57M
Year 5: $65M (forecasted)
Business Objectives:
Financial – double revenue ($114M) by Year 6
Human Resources – acquire and maintain a skilled and engaged workforce that exceeds customer expectations… make customers delighted!
Sales & Marketing – create a strong brand position and grow customer base (double west coast customers)
Innovation – stay on the cutting edge of technology to provide market-leading, effective, and secure products


Expand San Francisco office

The CEO has directed the construction of a new facility for a west coast business hub. He wants it to be approximately the same size of the Boston-based office to rapidly expand business on the west coast, with the goal of doubling revenue by Year 6. The current office manager in San Francisco has expressed concerns about acquiring the needed workforce at current salary levels. He also believes retention is lower than it should be due to intense competition for skilled technology workers. He recommends significantly increasing salaries and introducing performance bonuses, at least for San Francisco-based employees.

Your job is to determine:

Is there a problem with retention in the San Francisco office?
If there is a problem, is an increase in compensation likely to fix the problem?
If compensation isn’t the fix, what could help improve retention?



Situational Metrics:
Collect the following metrics:
Retention Rate
Salary Competitiveness Ratio (SCR)
Collect any additional metrics you believe may be helpful in answering the questions listed above.
For Retention Rate, SCR, an any other metric you selected, explain why they should be collected (i.e., explain how these numbers help us better understand the situation).


Data Collection: Where would you find this data / how do you collect the metrics you selected?


Collection Results: In this scenario, you find:
Retention Rate: 70% (Boston office is 89%)
SCR: 0.8


Use the following hypothesis:
As SCR increases, the Retention Rate increases.
Develop at least one more hypothesis that may help to determine the root cause of the lower retention. Ensure the hypothesis describes the relationship you expect to find between metrics.


Test: Describe at least one type of statistical test that can help you prove or disprove your hypotheses. Remember, you want a statistically significant result to show the findings are not just found at random.


Findings: Summarize the outcome(s)/learning(s) from your statistical test (i.e., did you prove or disprove your hypotheses? What are relationships (e.g., positive correlation, negative correlation, causation, etc.) between the metrics?


Recommendations & Initiatives: Outline one initiative you would recommend (these should be supported by the findings in the prior step). For example, if the findings show that as SRC increases that the Retention Rate does increase, your initiative should do something that improves SCR.


Impact on Business Objectives: For your recommendation/initiative, discuss the impact on each of Rex’s business objectives (Financial, HR, Innovation, Sales/Marketing)


2. Write a detailed paper using the attached template: HRM6025 – Week 3 Assignment template
– Page length should be approximately 5 or 6 pages (including coversheet and reference list). Page length is a guide only. Content is more important than page length.
– Ensure you use APA style (formatting, references, citations)


3. The following list of metrics may help identify metrics for this assignment: Sample HR Metrics – 2019(1).pdf

– Please note that this only lists some examples of metrics. There are many other possibilities.

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