Analyze the Case Study “Take it or Leave it”

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Case 1: Take It or Leave It
Both John Johnson and Martin LeBlanc are employed as systems software engineers for a budding social media company with offices in San Jose, California and Atlanta, Georgia. In fact, John and Martin studied at the same university and were in several courses together. Both were hired last year at about the same time, assigned to work in the Atlanta office. John accepted the company’s salary offer of $65,000 and Martin negotiated a slightly higher starting salary. Both salaries were competitive with starting pay for software engineers employed in Atlanta.
After six months on the job, Martin’s manager, Beth Liu, called him into her office to discuss his early job performance. Beth lavished Martin with praise, citing his technical skills prowess, for taking the initiative to recommend system improvements, and his demonstrated ability to work well with others. Of course, Martin was pleased and he expressed satisfaction in his role and he promised to make more impressive contributions to the company.
Beth said that she was pleased to hear Martin’s thoughts and indicated that she looked forward to his further contributions. Then, she went on to say that a software engineer in the San Jose office left the company and asked him to fill the vacancy. Martin was excited to hear the news because he had hoped to work in the San Jose office one day.
Before leaving Beth’s office, Martin asked her to confirm his new salary rate. Beth was puzzled by the question because Martin would be assuming the same role in San Jose. She reminded him of this fact and indicated that his salary would remain the same. Following company policy, Martin could expect to receive future pay increases based on performance or promotion into a higher-ranking job. His excitement turned to disappointment and he had second thoughts about moving to San Jose and began wondering whether he should take it or leave it.
Questions:
1. Why did Martin become disappointed?
2. Do you think that Beth’s decision was reasonable? Why or why not?
3. What are some of the factors that Beth should consider when transferring employees from Atlanta to San Jose? From San Jose to Atlanta?

Sample Solution

Question 1: Why did Martin become disappointed?

Martin’s disappointment likely stemmed from a few factors:

  • Expectation of a salary increase: Given his positive performance review and the opportunity to relocate to a higher-cost area, Martin may have expected a salary increase as part of the transfer.
  • Perceived inequity: If Martin believed that his contributions were valued more highly than John’s, he might have felt that his current salary was unfair, especially compared to the potential for a higher salary in San Jose.
  • Lost opportunity: The transfer to San Jose represented a career opportunity, and Martin may have felt that the company wasn’t adequately compensating him for that opportunity.

Question 2: Do you think that Beth’s decision was reasonable? Why or why not?

Beth’s decision was likely reasonable based on the company’s policies. If the company has a policy of maintaining consistent salaries for similar roles across different locations, then a salary increase for the transfer would be an exception rather than the norm. However, from Martin’s perspective, the decision might feel unfair, especially given the increased cost of living in San Jose.

Question 3: What are some of the factors that Beth should consider when transferring employees from Atlanta to San Jose? From San Jose to Atlanta?

When considering employee transfers, Beth should consider the following factors:

Factors for transferring employees from Atlanta to San Jose:

  • Cost of living: The higher cost of living in San Jose should be factored into compensation decisions.
  • Employee preferences: Consider the employee’s personal and professional goals, as well as their family situation.
  • Skillset and experience: Ensure that the employee has the necessary skills and experience to succeed in the new role and location.
  • Company needs: Evaluate the company’s needs in the San Jose office and determine if the employee’s skills align with those needs.

Factors for transferring employees from San Jose to Atlanta:

  • Cost of living: The lower cost of living in Atlanta should be considered when determining compensation.
  • Employee preferences: As with transfers from Atlanta to San Jose, consider the employee’s personal and professional goals.
  • Skillset and experience: Ensure that the employee has the necessary skills and experience to succeed in the new role and location.
  • Company needs: Evaluate the company’s needs in the Atlanta office and determine if the employee’s skills align with those needs.

Additionally, Beth should consider providing relocation assistance and support to help employees adjust to the new location.

 

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