Characters of this Case
Typeware AG Ltd.
• Renate Schmidt– Head of HR Department.
• Anne Prevost – Director of Marketing, Xon Technologies. ( Person to be appointed)
• Jürgen Mehr –Typware’s European head of Marketing.
• Thomas – CEO of the firm.
• Rainer Barth – Contact at the consulting firm.
Typware is a German software giant which new strategy is to increase their international revenues by 10%. In order to do that, they need professional to help increase their international sales. Anne Prevost, who engineered a huge uptick in sales for a company that has been making incursions into Typware's markets, is ready to jump ship--provided Typware makes her a good offer. Jurgen Mehr, is irritated about the salary demands of the American executive he wants to hire. She would be a brilliant catch. But the salary she wants is nearly as much as Mehr's. Renate Schmidt is now in trouble with this matter. She is in dilemma to take decision of making compensation package for Anne Prevost.
Since 1996, Typware has ventured aggressively into international markets. The consultants who helped negotiate compensation for overseas employees’ recommended variable standards depending on the employee's location. Renate is concerned about their salary system. But CEO Thomas noted that “Certain jobs are not ever going to follow the rules”. He indicated jobs based on performance or intellectuality. He also told Renate to make a salary and benefits recommendation which will be equitable for a German Typware employee & Anne Prevost.
Now, after discussing with Rainer Barth her contact at the consulting firm she talked to Anne to get answers of the questions of Rainer. Anne told about the benefits she expects and also reminded that other good offers are also waiting for her. Once again Renate didn’t got any easy solution to this matter. Now the question is-