The case highly paid receptionist is about an owner who recently discovers that the receptionist he has employed is one of the most highly paid person in his organization. She was one of his first employees, during the time he started on a minimal budget. At that particular time the owner did not have much to pay her the salary that she desired, so in order to overcome that he developed her share into the profits of the firm.
Harvey the owner after seven years now have realized the fact that she being just a mere receptionist is actually earning more than anyone in the firm, even the top executives, and that she only earns less than what he as an owner earns, and now he is at a loss wondering about how to handle the situation and go about it. On one hand it is very clear that all the other employees are also liable to deserve a much better pay, and if they come to find out that Ms.
Branenn who is the receptionist is earning more than all the other employees in the firm, that would cause some serious personal damages and there is a very high chance of many problems that might occur. Problem Statement There is quite a predicament in which Harvey Finley is stuck in as the net profit of his company should have been approximately 107,614. 21 more than what he expected it would be for this year and the problem that occurred out is that his receptionist is making almost seven times the amount in the local market of an average receptionist and has been for quite a time now.
Realistic Alternatives There are a few ways through which this problem can be addressed, and one of the way includes talking to Ms Brannen and advising her the fact that there was an oversight in the salary she is being given for the past couple of years and in the upcoming year, the oversight will have to be corrected and therefore her salary would be adjusted to only $25,000 per year, which is an average good salary in the market for a good and experienced receptionist, also she would be given no bonus on the percentage of sales and that her share in the profit would be taken back.
Another way which can be used to address the issue is by firing the manager who was responsible for this oversight and should have reported such oversight to Harvey and then promote Ms Brennan to his particular position, as she already have enough amount of experience in the business, and as it is mentioned in the case, she is already much of an administrator in the office, therefore she must know how the process of the whole business goes about, and with explaining the oversight, her salary could be adjusted to $55,000 per year.
One more solution to such an issue would be to just let things be the way they were, given the fact that the company is already doing great and also growing the way things already are.
Courtney from Study Moose
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