Should teddy offer to hire wayne at a rate higher


Problem

Teddy Fields is the kitchen manager at the Tanron Corporation International Headquarters. The facility he helps manage serves 3,000 employees per day. Teddy very much needs an additional dishwasher. He is now interviewing Wayne, who is an excellent candidate with five years of experience and who is now washing dishes at the nearby Roadway restaurant.

Teddy normally starts his new dishwashers at $12.00 per hour. Wayne states that he currently makes $13.25 per hour; a rate that is higher than all but one of Teddy's current dishwashers. Wayne states that he simply will not leave his current job to take a "pay cut."

Should Teddy offer to hire Wayne at a rate higher than most of his current employees? Why or why not?

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