Reference no: EM132868662

Hire Competitors' Employees

Because of the expansion possibilities brought about by the effects of deregulation and a good demand forecast, you are considering adding a salesperson to your staff. A competing airline, which is larger than yours, has a sales manager who has built a large corporate customer base. Because of her pleasant personality and convincing style, she has been able to successfully cultivate the travel agents in the region as well as sign several corporations for steady charter business. One of your friends believes she can be lured away from her current employer with a bonus of $10,000.

Another important position for your firm to consider is that of director of maintenance. This area can either make or break an airline in a hurry. Timely record keeping is a regulatory requirement that gets many airlines into trouble. Parts inventory management as well as mechanic and aircraft maintenance scheduling are also crucial elements to an effective and efficient maintenance operation. A talented director is working for another competitor of yours, and he could probably be lured away for a bonus of $10,000.

Two of your owners discuss the situation: "I just don't like taking an employee from a competitor. It's bad business. They could turn around and hire one of the people we've invested a lot in. Don't we have a responsibility to competitors as well as to our passengers and staff?"

"I don't think so. After all, business is business. Besides, the employees are making the free choice to move. We're just offering them the kind of salary their current employer should have offered them."

In some industries, the hiring of other firms' employees is common, while in other industries it is thought to be unethical. In the airline industry there isn't a norm. What will you do?

SELECT ONE OPTION FROM BELOW:

1. Hire the salesperson. To do so, make this selection, go to the Marketing decision page, and add at least one salesperson for the "Number to Hire/Fire" decision. (Cost: $10,000)

 2. Hire the director of maintenance. (Cost: $10,000)

 3. Hire both. To do so, make this selection, go to the Marketing decision page, and add at least one salesperson for the "Number to Hire/Fire" decision. The director will be automatically added to your staff when you make this selection. (Cost: $20,000)

 4. Hire neither.

ANSWER THE FOLLOWING QUESTIONS:

A.  What risks do you face in hiring either of these employees with a sign-on bonus?

B.  What might the media (news stations) say about this sort of hiring practice?

C.  What, if any, professional courtesy do you owe a competitor? Why?

D.  What choice did you make? Why?