SCENARIO

Your top account executive, Angela Harris, just finished telling you that your best customer, Bernard Wells, president of Sterling Corporation, made her a generous offer to come sell for him. Although Harris hadn't agreed yet to take the position, she was tempted.

She would receive a 15 percent increase in base pay, keep the three weeks vacation she had accumulated working seven years for Austin's ad agency, and could earn a year-end bonus of up to 25 percent of her total compensation.

Not to mention that she knows the customer's company as well as she knows your agency (since Sterling has been her client for six years).

You asked Harris to give you a few hours to think about the situation, and then you would talk more. She agreed.

As soon as Harris closed the door behind her, you slump into your chair, elbows on your desk, face leaning into your hands, shaking your head. A lot of questions begin racing through your mind.

You could wish her well and let her go, but how many accounts would you lose because their key contact at Austin Advertising left (you know too well that advertisers can be a fickle bunch)?

Will Sterling leave you for another agency if she stays? Should you counter the offer (you could), she was well worth it. Is she a loyal employee?

Please Answer the following questions:

1. Should you make a counter offer?

2. Is Harris a loyal employee?

3. Is Harris easily replaced?

4. Will you lose a great deal of business if Harris leaves?

5. Will Sterling actually change agencies based on a battle for this employee?

Answer the above questions in 200+ words.