Pay Increase Demands of Employees
You are an HR manager with Spring Valley Laboratories. The organization pays its employees according to specific pay grades and ranges but maintains secrecy surrounding the specific numbers.
Nancy Lopez, a highly skilled medical technician, discovers that a male employee whose qualifications, experience, and job profile are similar to Nancy's is getting a considerably better package than she. Nancy serves a notice to the executive director, John Morrison, and threatens to resign if the organization does not grant her an immediate pay increase.
John does not want to lose Nancy because she is a skilled employee who has performed well in her eight-month career with the organization. John writes you an e-mail and seeks your advice on the case. You check Nancy's employment records and find that Nancy was given the compensation package that she had asked for during her final interview. You also find that Nancy's package is toward the lower limit of the pay range applicable for her job position. Nancy's salary is due for review after four months.
Based on this information frame your response to John. The response should answer the following:
- Is Nancy's case a situation where a pay increase is called for? Why or why not? Justify your response with facts.
- Is Nancy's case eligible as a pay inequity grievance? Why or why not? Explain.
- How should Spring Valley Laboratories handle the situation? Provide John with a detailed plan of how the situation should be handled.
- What impact would granting or not granting Nancy an immediate pay increase have on other employees? Why?