1. Introduction
To study the CEL case, we need to know the background of this company, how it compensates its employees, and what is happening in this case. The Cisca Engineering Ltd. (CEL) is a Canadian engineering consulting firm. It provided customers throughout the world with services related to the manufacturing of pressure equipment. In 2018, it has 16 employees and each of the employees have ownership of the CEL, the majority of CEL’s employees had about 5 per cent stakes in their employer. It does provide many rewards toward their employees, which includes both tangible rewards, such as employees’ base salary, health-related benefits, and pension support, along with intangible benefits, such as CEL company culture, career development opportunities, and a safe workplace. It is a totally employee owned engineering consulting firm.
At this point, the president of CEL Jeff Arvidson and the board of directors had decided to branch out into pipe stress analysis. This work provides great opportunities for CEL to increase their revenue. In order to serve the clients with high quality service and professional skills, Arvidson and the engineering manager Bob Davies decided to hire Ron Grubb. Ron Grubb is a mechanical engineer—specifically, as a pipe stress analyst with seven years of engineering experience. His professional techniques are very qualified for CEL and both Arvidson and Davis believe he will fit in the culture of CEL.
2. Problem
Both Arvidson and Davis want to hire Grubb as their pipe stress analyst. However, Grubb would expect that his salary to be in at least the CA$90,000 to $110,000 range. This requirement does not fit the current compensation system of CEL. The average base pay for engineers with between five and 10 years’ experience is $85,000 in CEL. As a seven year engineer in CEL, Grubb only fit in this category but it is way lower than what he expected. Nevertheless, both Arvidson and Davis wanted him to be on board and trying to figure out the best solution toward this case. There are now three main options: 1. Offer Grubb the job at a lower salary and take the risk of being turned down. 2. Give Grubb the salary he wanted and risk upsetting his other employees if they found out. 3. Completely revamp his compensation system and increase salary levels for all of the engineers.
3. Alternative Available: write around 2 pages
( Give Grubb the salary he wanted and risk upsetting his other employees if they found out).
Identify and analyze the alternative to solve the problem. In your analysis, describe some of the pros & cons of the alternative.
