Case: the Overpaid Bank Tellers

706 Words3 Pages
CASE The Overpaid Bank Tellers State Bank is located in a southwestern town of about 50,000 people. It is one of four banks in the area and has the reputation of being the most progressive. Russell Duncan has been the president of the bank for 15 years. Before coming to State Bank, Duncan worked for a large Detroit bank for 10 years. Duncan has implemented a number of changes that have earned him a great deal of respect and admiration from both bank employees and townspeople alike. For example, in response to a growing number of Spanish-speaking people in the area, he hired Latinos and placed them in critical bank positions. He organized and staffed the city's only agricultural loan center to meet the needs of the area's…show more content…
One February, another bank in town conducted a wage survey to determine the average compensation of bank employees in the city. The management of State Bank received a .copy of the wage survey and was surprised to learn that its 23 tellers, as a group, were being paid an average of $22 per week more than were tellers at other bal).ks. The survey also showed that employees holding other positions in the bank (e.g., branch managers, loan officers, and ftle clerks) were being paid wages similar to those paid by other banks (see Exhibit 4.1). t. After receiving the report, the HR Comfuittee of the bank met to determine what should be done regarding the tellers' raises. They knew that none of the tellers had been told how much their raises would be but that they were all exp~cting both merit and cost-of-living raises. They also realized that, if othet employees learned that the tellers were being overpaid, friction could develop and morale might suffer. They knew that it was costing the bank over $26,000 extra to pay the tellers. Finally, they knew that as a group the bank's tellers were highly competent, and they did not want to lose any of them. EXHIBIT 4.1 Wage Survey Results: Comparative Salaries of Local Bank Officers Position Bank 1 Bank 2 Commercial Loan Officer Bank 3 State Bank $48,400 $48,600 ' $49,500 $47,900 Consumer Loan Officer 39,200 34,700 35,760 39,000

More about Case: the Overpaid Bank Tellers

Open Document