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The problem is that inadvertently an e-mail was sent to all employees that disclosed compensation figures of all the employees at the office. The disparities and inequities in the salary structure have eaten away the morale of the employees and there is a sudden increase in turnover. Julie does not know how to ameliorate the situation.
Causes/Issues: The main cause for this problem is that there is widespread inconsistencies in the salaries that are paid by Julie Sanders to her employees. On one hand Julie Sanders can remove the inequities of salaries by increasing the salaries and making them equitable, however, if she does so the costs will go up to such an extent that the company will make a loss and will have to close down.
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