Since Riordan has been losing key employees because of low morale and competitive salaries, it is important that all departments come together and address the issue. Employees in research and development feel that since switching to CRM, individual incentive programs will be adversely affected (Apollo Group, Inc., 2004).
Additionally, Riordan's employee, in general, feel that the pay is tied to seniority more than performance and that newcomers are paid more than internal promotions. Most believe that in order to get promoted, one must quit and come back to work for Riordan. The company does not conduct annual performance reviews and employees feel that there is no recognition for outstanding performance (Apollo Group, Inc., 2004).
Although Riordan's HR conducts annual employee surveys, the information is not used objectively. Riordan should conduct an audit of each position and research internal and external labor markets to determine current competitive salaries in those positions. Employees do not feel rewarded in connection with the company's strategy and do not feel valued and thereby lack motivation. Riordan employees feel drained in current positions because the company does not offer advancement or promotions to its employees (Apollo Group, Inc., 2004).
In essence, Riordan offers few opportunities for training or advancement. The company does not seem to promote employee development opportunities (Apollo Group, Inc., 2004).
Stakeholder Perspectives/Ethical Dilemmas
The stakeholders are comprised of several groups. Sales management and sales people would like to see the commission structure improved so that the new teamwork philosophy is recognized. The values of the sales management group are to increase employee pay in conjunction with implementing the CRM strategy. The engineering and information technology management group are concerned about losing key employees and would View More »