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- Date Submitted: 01/13/2013 05:01 PM
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SECOND ASSESSMENT –INDIVIDUAL CASE STUDY
1 The Case Study
Putteridge Solutions plc provides a range of software services to clients, mostly in connection with internet security. Most of its work is with corporate clients, who want security assessments, infrastructure health checks, and advice and help on purchasing security packages, some of which are provided by Putteridge Solutions itself. Its main head office is in the UK, with smaller offices in several European companies. It employs over 400 staff in the UK. About 300 are skilled technical workers, frequently working in small teams on projects with corporate clients. The work is highly technical, requiring painstaking detailed application.
Until the economic downturn last year, the labour market for skilled technical staff was tight. Putteridge has been able to recruit because it has a policy of paying well – its basic pay is at the upper quartile level for the sector. Staff have been able to gain team bonuses based on the work they do with clients, and in addition there has been an annual bonus for all staff based on the company’s profits. This annual bonus, which has increased in recent years, was worth £9,000 to the average employee last year. The company provides technical updating for its staff, but relies on major competitors and educational bodies to provide basic training. Employee relations has not been a priority; the main way to maintain employee engagement has been an attractive reward package. Technical staff work in semi-autonomous teams, and are kept informed of organisational developments through emails, team meetings, and occasional “town hall” meetings with the Chief Executive Officer (CEO).
In the last year the company’s revenue and share price have declined markedly. This year it anticipates that the annual bonus payment will be only about a fifth of last year’s, and is forecasting no annual bonus payment for next year. Team bonuses have similarly been reduced,...
1 The Case Study
Putteridge Solutions plc provides a range of software services to clients, mostly in connection with internet security. Most of its work is with corporate clients, who want security assessments, infrastructure health checks, and advice and help on purchasing security packages, some of which are provided by Putteridge Solutions itself. Its main head office is in the UK, with smaller offices in several European companies. It employs over 400 staff in the UK. About 300 are skilled technical workers, frequently working in small teams on projects with corporate clients. The work is highly technical, requiring painstaking detailed application.
Until the economic downturn last year, the labour market for skilled technical staff was tight. Putteridge has been able to recruit because it has a policy of paying well – its basic pay is at the upper quartile level for the sector. Staff have been able to gain team bonuses based on the work they do with clients, and in addition there has been an annual bonus for all staff based on the company’s profits. This annual bonus, which has increased in recent years, was worth £9,000 to the average employee last year. The company provides technical updating for its staff, but relies on major competitors and educational bodies to provide basic training. Employee relations has not been a priority; the main way to maintain employee engagement has been an attractive reward package. Technical staff work in semi-autonomous teams, and are kept informed of organisational developments through emails, team meetings, and occasional “town hall” meetings with the Chief Executive Officer (CEO).
In the last year the company’s revenue and share price have declined markedly. This year it anticipates that the annual bonus payment will be only about a fifth of last year’s, and is forecasting no annual bonus payment for next year. Team bonuses have similarly been reduced,...