Case Study: the Overpaid Bank Teller Essay

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Problem: State Bank has over time increased salaries to tellers that were so high that of the 23 tellers at State Bank they were being paid over what other local tellers were being paid; additionally no other employees outside of the tellers were receiving an exceedingly higher salary based on the other local banks averages. All of this information was compiled in a report based on survey results taken from State Bank and the other local surrounding banks.
Analysis: Now that this information has been reviewed State Bank determined that salaries would need to be modified or moving forward the salary structure would need to be modified for the tellers, according to the competitive data and based on what the ladder in salary was for all
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While those amounts maybe still be rather high; cutting back that 2% in raises and those costs of living increases can close that $26,000 overage, and make room for other incentives that are granted on a smaller scale, perhaps a quarterly bonus for employees that don’t miss any unscheduled days off, or create teams within the bank that can challenge other teams in the bank for free items such as dinner & a movie, gift cards or other non-monetary incentives which could be sponsored by local businesses which could ultimately costs the bank nothing other than some publicity or employee awareness of those local businesses.
Conclusion: Overall Duncan has done a fantastic job bringing the bank to place that other local banks model themselves after, however during the road to this great domain he failed to look at the potential costs associated with raises over time and merit increases staying reasonable. While others were meeting some marks for their level of service the tellers were going to always have an advantage because they are the core of the bank because the customers interact with them more regularly, the customers get to know them, making it easier to be more productive and positive, hence giving them an incentive to do great work every day.
While the teller
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