Independent and Dependent variables
"An independent variable is a variable that the market researcher can, to some extent, manipulate, change, or alter," (McDaniel & Gates, 2005, p. 62). While a dependent variable is a variable expected to be explained or caused by the independent variable, (McDaniel & Gates, 2005, p. 498). Some variables that affect or can predict salary are: industry, firm's size, geographic location, education, job level, race, gender and experience just to name a few. However, compensation is a variable that affects the ability of XYZ Pharmaceuticals to attract qualified employees, retain current workforce and motivate staff to direct their efforts towards organizational goals. Compensation perception is the independent variable and attrition rate is the dependent variable. Variables identified for this paper include people available for employment; compensation offered by others companies in the industry, compensation trends, employees background and experience.
Hypothesis and theories
XYZ Pharmaceuticals is a struggling Pharmaceutical company that unable to compete with industry competitors because of a lack of talent. XYZ Pharmaceutical has identified a problem of being unable to attract quality research scientist that will assist with the development of chemical products that are profitable. The hypotheses statements that will be used are:
Null: XYZ Pharmaceuticals' salary for research scientists is greater than or equal to the research scientists currently in the industry.
Alter: XYZ Pharmaceuticals' salary for research scientists is less than research scientists currently in the pharmaceutical industry.
The null and alternative hypotheses are used to evaluate XYZ Pharmaceutical's compensation packages compared to their counterpart within the industry. The sample size will consist of 30 randomly selected from the 100 interviewees. View More »