Legal and ethical dilemmas

Examine the following real-world scenarios. Answer the questions at the end of each segment. After the last segment assess the overall situation.

1. You have just graduated with a major that is in high demand – BS in biotechnology and you are

knowledgeable about mapping the human genome. You have been offered a very attractive job with

a medium-sized firm. Your starting salary is at the current market wage for your major. A best friend

who works for the same firm has told you that your starting salary is $5,000 more than experienced

employees earn because your major is in high demand. They were hired by the firm before the current

high demand for your type of skills materialized. Your friend tells you that your co-workers are very

productive and skilled and they will train and mentor you. Assuming that this is your best job offer,

would you accept it? Would it be ethical for you to do so?

I would accept the job offer since it is the best offer that is currently on the table. I do not agree with the friend sharing information about other coworkers pay since this should be confidential information and should not be shared with other employees. I do not think that there is an ethical issue other than the release of improper information by the coworker. As the candidate I should not be penalized for getting a degree to advance myself and make more money. So in this position I would not have any ethical issue with accepting the job at hand.

2. You accepted the job and have been with the firm for three years. You have received excellent annual

evaluations and significant merit rises. In fact, your supervisor said you will likely be promoted within

the next few years. Recently, the firm’s business has improved dramatically, and your department

needs to hire a new employee. Given the shortage of applicants, the current average market wage

has increased, and your boss offered a new graduate from your alma mater $5,000 more than you are

receiving. Given your superior skills, you will be asked to train and mentor the new hire. Do you agree

that the firm should pay the market rate? Would it be ethical for the firm to do so?
In this position I would not have any issue with the company paying market value. If the company did not match my salary with the new hire or even give me a raise above the new hires pay then there would be no problem. However, if the company did not match his salary or exceed it then I would take issue and there may be performance issues due to feeling underappreciated at the company.

3. Based on your skills, performance, and years with the firm, you have recently been promoted to

manager and given a significant pay raise. Because business continues to improve, you must hire one

additional person. You return to your alma mater. Unfortunately, the supply of applicants is still small,

and the demand is still large, so the market average starting salary is $5,000 more than the salary of

any of the more highly qualified employees you supervise. Would you offer that amount to a new

employee? Would it be ethical for you to do so?

In this position I would offer the money to the new employee since I would need to meet market value in order to hire the best people for the position. I would also look at the compensation of employees that are doing the same job and make sure that they are brought up to current market values so that we do not lose any current employees. I do not see an ethical dilemma as long as I am treating all of the employees fairly.

• As an HR professional, would you recommend the above actions? Why or why not?

I would recommend that the company move forward with the hires as long as they take action to make sure that the current employees also receive fair market value for their positions.

• What are the costs and benefits to the firm of paying the higher salaries?
The costs will be