Reference no: EM131944674

Harry discovered that his department had hired a recent university graduate as a systems analyst at a starting salary almost as high as Harry's. Although Harry was good natured, he was bewildered and upset. It had taken him five years to become a senior systems analyst and attain his current salary level. He had been generally pleased with the company and thoroughly enjoyed his job.

Harry confronted Dave, the human resource director, and asked if what he had heard was true. Dave apologetically admitted that it was and attempted to explain the company's situation. "Harry, the market for systems analysts is very tight, and in order for the company to attract qualified prospects, we have to offer a premium starting salary. We desperately needed another analyst, and this was the only way we could get one."

Using information from the textbook and outside reading, discuss this problem. Did Harry have a legitimate concern? What action do you believe the company should have taken with regard to Harry?