Explain sigourneys problem


Problem

Sigourney weaver owns a costume rental business in Charlotte. She specializes in alien costumes. She is a huge believer in second chances and hires people who are recovering drug addicts, felons, and alcoholics. About 50% of her employees fall into this category. She is a well known advocate in Charlotte, and many people know of her beliefs and desire to hire people needing a chance. Sigourney gives motivational speeches at homeless shelters, prisons, and substance abuse clinics in her spare time.

She does not do substance abuse tests either upon application or after employment. She also does not do any background or credit checks. She believes they are demeaning to her employees and contrary to the spirit of her beliefs.

She has been having problems with employees not showing up on time (or showing up at all).

Employee performance is also low. Annual employee turnover is approaching 75%. Her profitability is also suffering.

Using the decision model, explain Sigourney's problem?

How to help solve her problem while keeping her belief system in mind?

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Microeconomics: Explain sigourneys problem
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