The Well Paid Receptionist
Harvey Finley is in quite the predicament. He his company’s net profit should be approximately $107, 614.21 greater than he expected for this year. The problem is that his secretary/receptionist is making six to seven times the amount of an average “good” secretary/receptionist in the local market and has been for a few years.
There’s a few ways this issue can be addressed. One way would be to talk to Ms. Brannen and advice her that there has been an oversight in her salary over the past few years and for the upcoming year the oversight will be corrected and her salary will be adjusted to $25,000 per year with no percent of sales bonus. Another way to address the issue is to fire the …show more content…
A potential positive impact would be that other employees will see that being a hard worker and sticking through the highs and lows of a business really pays off. This may motivate all other employees to be outstanding or above average performers. The employees have witnessed the value over time with Ms. Brannen and have seen the long-term effects on her salary. A negative impact would be that employees who have already been at Troupville Business Systems and have not seen the value over time in the bonus or benefits will demand a raise or quit. Salary is always a delicate situation to deal with and this is why it is not considered acceptable talk in the office. Another negative impact is over time if the company grows and does not have an increase in sales then Ms. Brannen will still be making more than Finley since he has more overhead to pay for.
There are steps that can be taken to negate a potential negative effect. First of all no one should be discussing compensation at all inside or outside the office. Second in case it does get out then there should be a one on one sit down with each employee to discuss their performance, not Ms. Brannen’s. Finley does not need to