You work in the human resources department of Life Care Center Skilled Nursing as manager of compensation and benefits. Among its departments, the Center has a rehabilitation unit led by a physical therapist who has been a manager for less than a year. You are aware that this department manager has been involved in several disagreements with the recruiting section of HR concerning how to proceed with job offers. The new manager insists on personally extending offers. Most recently the rehabilitation manager was actively recruiting to fill a senior physical therapist position. Experienced physical therapists have been scarce. Finally one is located who seems to be ideal. Although not a practicing physical therapist for as long a time as the others on staff, her credentials and experience are superior. The rehabilitation manager offers the job to this candidate, telling her the facility $$will have no trouble meeting her asking price,$$ which is a salary near the top of the company$$s range and greater than the highest paid therapist in the department.

The manager instructed the HR recruiter to make the formal offer. His actual words were, $$Complete the paperwork, because the real offer has already been made.$$ Because the requested salary is not only above the minimum but also far above the midpoint of the range, the issue is referred to you for analysis and a recommendation.

Your research reveals that the requested salary will bring the new employee in at $$6,000$ per year more than the highest paid therapist presently employed. Your initial reaction, relayed back to the manager, is that this rate will create an intolerable pay inequity involving several people. The manager rejects your argument, stating, $$This is my department and I make the salary decisions. And any inequity that my actions may create is mine to manage and of no concern of human resources.$$