The presented situation reflects the case when the seller is ready to use any means to make profits, whether it is the deception of customers or pressure on employees. The reviewed video makes it clear that, despite a positive reputation and work with large financial assets, TD Bank pursued the task of achieving performance targets unethically (CBC News, 2017). Along with complaints from the staff, other undesirable consequences of such internal organizational policies may emerge. For instance, customers who are dissatisfied with the quality of the service offered due to discrepancies between anticipated and actual results may file a class action lawsuit against an unscrupulous seller. By pursuing a pay-for-performance entrepreneurial policy, a business risks losing its existing share of target customers as the feedback system works well today. Being frustrated with the seller’s services, buyers may spread the word about illegal or unethical business policies. This will entail significant reputational risks and may result in critical financial losses for the seller. While taking into account competition as an integral attribute of a market economy, such an outcome is highly undesirable, and as losses increase, a business may face bankruptcy.
To determine the approximate salary for a new employee, one of the convenient ways to find out unbiased information is to study similar vacancies on specialized web platforms with vacancies. As a rule, based on general market trends, recruiters post relevant data with requirements for applicants and reflect the planned salary. Another option is to consult with partners on this topic. Having comprehensive information about the dynamics of wages in other companies, the owner can get a real and objective picture. However, when looking for such data, one should take into account other factors that may affect the company’s financial spending figures. One of these criteria is the specific profit of the enterprise, which is formed from several aspects – the average number of customers, the share of market coverage, and other factors. In addition, when planning salary expenses for a new employee, the employer should clearly understand the range of tasks of this subordinate and his or her work schedule. Otherwise, the level of wages may be biased and not correspond to the tasks performed, which may be disadvantageous for either one or the other party.
Since any large business, especially those related to equity activities requires constant monitoring of the current market situation to effectively manage assets, it is logical that companies adapt their budgetary expenses. However, given the problem described by MacMillan et al. (2020), one can note that laying off employees in the name of cutting costs is a highly unethical practice. In an attempt to please large shareholders, companies spend money not on innovation and employee assistance but on maintaining their reputation as stable enterprises (MacMillan et al., 2020). This position reflects a purely entrepreneurial interest, but it does not fit into the concept of business ethics. Employees are always one of the main assets of any company, and an internal policy directed against their subordinates indicates the inability of managers to coordinate the development direction adequately. Moreover, over time, the reputation of such a firm may deteriorate due to the public condemnation of such an HR approach. Therefore, even by cutting costs by laying off staff, companies risk losing a competitive advantage over more personnel-oriented businesses.
References
CBC News. (2017). Bank employees say their jobs depend on aggressively upselling customers[Video]. YouTube.
MacMillan, D., Whoriskey, P., & O’Connell, J. (2020). America’s biggest companies are flourishing during the pandemic and putting thousands of people out of work.The Washington Post.