EXHIBIT 4.1 Wage Survey Results: Comparative Salaries of Local Bank O Position C

Question

EXHIBIT 4.1 Wage Survey Results: Comparative Salaries of Local Bank O Position Commercial Loan Officer Consumer Loan Officer Mortgage Loan Officer Branch Manager Assistant Branch Manager New Accounts Officer Officer Trainee State Bank $48,400 39,000 47,200 38,400 26,300 23,800 23,300 Bank 1 Bank 2 Bank 3 $48,600 39,200 47,100 37,700 27,800 23,900 23,200 i$49,500 34,700 45,900 39,400 27,400 23,800 23,000 $47,900 35,760 49,500 38,800 29,600 23,700 23,400 Average Weekly Earnings of Local Bank Tellers Tellers $372 $369 $375 $394 QUESTIONS 1. If you were on the bank's HR Committee, what would you do regarding raises for the tellers? 2. How much faith should the HR Committee place in the accuracy of the wage survey? 3. Critique the bank's policy of giving merit raises that range from 0 to 12 percent, depending on job performance. 4. Critique the bank's policy of giving cost-of-living raises. Should they be eliminated?

Explanation / Answer

If I was on the Bank HR committee, the first thing that we would be looking is not about the higher wages that we are paying to the tellers, but it would be the customer satisfaction levels. We already know that the bank has an admiration and respect in the minds of the town people and at the same time employee satisfaction is on high priority for the bank as a whole. While we are providing a better and high quality service, it definitely demands higher compensation.

On the other side we are looking at paying 26000 extra when compared to the competitors, which is a huge cost to the company and would have significant impact on the bottom line of the company if saved. But with regards to the decision that has to be made with respect to the hikes that we are about to give this year, my suggestion would be to maintain the higher compensation that we are paying to the tellers, but the concern with respect to the disparity with the other employees in the company needs to be addressed.

We would be maintaining the higher compensation that we are paying to the tellers as we want to retain the employees, therefore this year we would reduce the cap to about 8-9%, and maintain the same cost of living raise they are used to, therefore they employees would be satisfied that the raise in cost of living is catered to by the bank. In the long run this would reduce the disparity and at the same time retain the employees as well.

PS: Answered Q1 as per Chegg policy

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