A community bank is struggling to keep their tellers motivated and engaged. The bank has encountered a high level of turnover in this role. In order to retain their current tellers, the Compensation Team has proposed that the community bank should raise the base salary of the current tellers to the same base salary as tellers in a large bank. The Compensation Team of the community bank has also decided to hire new tellers at the same salary.

Each teller is also entitled to a 5% (of base salary) bonus regardless of experience, if the company meets their corporate goals.

The current tellers are upset that new tellers will be receiving the same base salary as them as they feel that since they have been with the community bank longer, they should receive a higher base salary. The Recruiting Team says that they are struggling to hire new tellers and feel that they have to hire new tellers at the higher salary.

For the Case Study Paper, please discuss the following:

Should a small community bank match their base salaries to a larger organization/bank? If yes, why? If no, why?