Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You will assume the role as a HRM Manager negotiating to keep Cindy LuLu. I am trying to balance internal alignment and equity while also

You will assume the role as a HRM Manager negotiating to keep Cindy LuLu. I am trying to balance internal alignment and equity while also being competitive with the offer she received. You will assume the role as Cindy LuLu during a simulated negotiation. I want Cindy LuLu to be assertive but not aggressive during the discussion.She appears to be very motivated by the financial incentives but as the HRM Manager I will focus on pointing out the problems that may be ahead for her at her new company while focusing on her potential here. I want this to be a back-and-forth conversation. I will include the details of the case below.
Case Details:
A three-year employee Cindy LuLu says she received an offer from another employer and is considering accepting it. Money is a huge factor. She currently makes $60,000 per year and the offer is for $68,000 per year. She says she will decline the offer if you agree to a $5,000 pay increase. The employee is a top performer, and you are determined to retain her but need to keep a variety of other elements in mind. For one thing, your budget is very tight and a $5,000 increase would take 50% of the pool of money you have available to make adjustments for all 20 employees you supervise. You have heard through the grapevine Cindy wasnt initially interested in leaving but that she was disappointed in her last pay increase (3%), so she was just sending out some feelers to have some leverage to use against you, but she is now seriously considering the offer.You know the position would add 30 mins (put in dollar terms) each way to her daily commute, and she already complains about the traffic she encounters each morning.After reviewing her pay grade ($55,000 to $65,000) you realize she is right at midpoint, which is typical for employees with 3 years of experience at your firm. However, her performance was considered A, while other employees in the position are also making a similar salary although several earned a B and one received a C.After talking to Cindys direct supervisor, Phil, you believe that money really is the motivating factor behind her decision to consider this offer. Employee Performance Years of Service Current Pay Rate Gender A - Cindy LuLu 3 $60,000 Female B 3 $58,500 Female B 5 $60,000 Male B 9 $63,000 Male C 10 $60,000 FemaleWhile your current compensation system does allow some flexibility for performance, the increase differential isnt enough. A performers get 3%, B get 1.5%, and C get 0.5%. Your HR team is having a tough time comparing the external market data because benefit packages are so varied.You know the offer for $68,000 is on the high end of the market, and after looking on glassdoor.com, you realize the atmosphere at the employer she is considering is a bit toxic. While you have some complaints about communication and some employees feeling overworked, the reviews your employees post on glassdoor.com are overwhelmingly positive. Your best estimate show your salary range is just below the external pay available for this position.After talking it over with the HR team, you have been told you can only offer Cindy a $2,000 increase, which falls short of the $5,000 she is requesting. You can a discussion about sticking with a workplace she know is awesome vs. taking a chance at a new company. Remember, the NLRB says you cant prohibit other employees from discussing their pay at work, so the impact of this decision could have a domino effect on other employees within the organization. While you wont go as far as telling her she cant talk about any action you take, try to subtly get the point across that with the $2,000 increase she will be making more than at least one employee who has been there for10 years
.The opening comment you would make is: "Cindy, thank you so much for bringing your new offer to our attention. I've talked to our compensation department about the offer and I'd like to see what we can do to keep you working here. You are a valued employee so we are doing all we can to keep you here. I understand the offer is higher but I'd like to help you think through the ofFer".
You will play the role as the HRM Manage
oNeed a back and forth script between Cindy LuLu and HR manager until Cindy LuLu decides to say or refuses the counteroffer and decides to leave

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Managerial Approach

Authors: Jack R. Meredith, Samuel J. Mantel,

7th Edition

470226218, 978-0470226216

More Books

Students also viewed these General Management questions