Which companys raise pool allocation is more fair

Assignment Help Business Law and Ethics

Reference no: EM133195652 , Length: word count:1000

Question: AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.

This year, both companies have a raise pool of $5,000,000 - that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.

AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.

BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.

Remember to answer all three questions in the same provided text box, and write 500-1000 words for the total assignment (about 175-325 words per question).

Question 1: Which company's raise pool allocation is more fair? Why?

Question 2: Which company will have employees who are, overall, more satisfied? Why?

Question 3: Which company is likely to outperform the other over the next year? Why?

Reference no: EM133195652

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