You are a senior partner at GME Consulting. One of your duties is to make salary recommendations for six junior
consultants who report to you. These individuals are all recent MBAs. Each of these consultants supervises a small
staff of assistants. They work on similar, although not identical, types of projects, in some cases specializing in
particular industry groups. Their current salaries range from 88,000 to 96,000.
You have been allocated $28,000 for pay raises. There are no formal guidelines that you must follow in determining
the pay raises, but your want to make sure that you convey the appropriate message to the consultants about their
performance and also motivate them for the subsequent year.
Below are profiles of each of the consultants. This is followed by Exhibit 1, which summarizes the evaluations that
the consultants received on their annual performance reviews. It also shows the consultants’ performance with
respect to three goals that you set for them for the past year. These goals were: (a) to reduce their expenses by 12%,
(b) to increase their billable hours by 10%, and (c) to increase their client base by 15%. You emphasized that their
salary increases would depend, at least in part, on whether they met these goals.
Assignment:
- Decide on a pay increase for each consultant (in both dollars and percentage-over-current-salary).
- Provide a rationale for your allocation decisions. What factors were most important to you? Least important?
- What are the most likely consequences of your allocation decisions, both positive and negative?
- Would you be comfortable making the pay raise information public? Why or why not?