Problem
Samantha just started her dream job at a day spa in Calgary. This spa happens to be the best spa in town and offers a wide variety of services, ensuring Samantha is making use of her skills while building up her clientele. The spa is also widely recognized and there are discussions about expanding. Samantha is excited to be a part of a growing company. The business prides itself on using only organic products and participates in several fair-trade initiatives and sustainable development projects- a cause that is important to Samantha.
Samantha is set to start, she receives a phone call from the Human Resources Manager Carol; regarding Samantha's compensation strategy. Carol indicates that the benefits package is competitive, but the salary is amongst the lowest of all the spas in the city. Salary was not something that Samantha thought about prior to this conversation and she assumed the salary would be competitive due to the success of the company. Samantha agrees to think about her ideal hourly wage and call Carol the next morning. Samantha hangs up the phone with Carol and immediately calls you looking for advice.
i. What is the starting salary you think Samantha should give Carol, why that number- how did you arrive at that decision?
ii. What would you tell Samantha to do if she received a job offer from another spa, one that would pay her much more but has less than ideal business practices? For example, the company uses non-organic products and uses products that may be tested on animals- something Samantha is against.
iii. How do you think these issues factor into Carol's decision-making?