Joe has been a machinist for 25 years at the same company, a steady and reliable worker. Although Joe is a significant asset to his firm, his wages have gone up steadily while his responsibilities have remained largely unchanged. The result is that Joe is significantly overpaid as a machinist compared with co-workers who have been doing the same job for just two years.
Struggling to ride out the worst of the recession and credit crisis intact, Joe’s company has fired dozens of workers — and considering Joe’s salary, he would seem to be a likely candidate for the next round of layoffs. Or maybe not. Joe’s a stellar employee who knows the ins and outs of the organization, the result of his many years on the job. If management let him go, not only would the company lose his wealth of institutional knowledge, but a troubling message would be sent to the other workers — namely, loyalty goes unrewarded. At Joe’s age and tenure, moreover, there could be legal implications to such a move. In short, the company would rather not fire Joe. But what’s the alternative?
Read the full story: http://www.strategy-business.com/article/11203?gko=8cdc9&cid=20110719enews