A key engineer from David Laith's group handed in her notice, giving the reason for

leaving as a much higher salary offer from a competitor. David told his boss Micro Dowling,
that they should top the competitor's offer in order to keep the engineer within the company,
even though this would mean that she would be earning well above the maximum for her
grade. 'We can always give her smaller increases in subsequent years to bring her salary
back into line, David said. What should Micro Dowling do?

Defining the Problem

A key engineer is being pirated by a competing company by enticing her of a bigger

salary. What should be the course of action of the home company in dealing with the key
engineer’s decision to jump ship and transfer to the competing company. Is it to top the
competing company’s offer and try to retain the engineer in the expense of giving a salary
more than what the engineers paygrade pays? or is it to let go of the engineer and find
another engineer to do the job?

Objective

To determine and assess the best possible alternative to choose that could provide
the most benefit with a few to minimal consequences involved.
Alternative 1

Offering the engineer a pay raise, while giving her smaller increases in subsequent
years to bring her salary back into line, to avoid loss of essential human resource for the
company.

Advantages Disadvantages

1) Avoidance of disruptions of work and 1) Risks of other employees demanding

projects being handled by the pay raise especially when colleagues
engineer as her absence is prevented. talk casually about their pays outside
the office.
2) Prevention of the loss of essential
2) The engineer will be paid well above
human resource on the company’s
the maximum for her pay grade.
part, As the recruitment and training
process is quite lengthy and can
consume resources.

Alternative 2

Letting go of the engineer and start recruiting another engineer offering the same
pay grade.

Advantages Disadvantages

1) Avoidance of complications brought 1) Disruptions of work and projects being

about by unfollowed company
regulations on pay grade.
handled by the engineer.
2) Essential human resource on the
company’s part, added cost of
recruitment and training process to
find a suitable replacement engineer.