| McGregor’s Ltd. |
Memo
To: | James McGregor | From: | Allen Lee | cc: | | Date: | October 29, 2014 | Re: | Employee Discount | | |
Mr. McGregor, I would like to talk with you regarding the pending change to our employee discount system. I agree with you that changes need to be made within the company, to save money and create revenue, but I don’t think taking discounts away from some of our long time employees is the best way to obtain those goals. I have set forth a plan that will insure more equality of discounts, including some employees that currently receive no discount at all, and in the long run, we will still save money without damaging the morale of our workforce. In my plan, we would adopt an employee discount based on the three-tier system you proposed. A 10%, 15% and 20% based on the each goods profit margin. The only difference is if the new plan isn’t beneficial to an employee, they would be grandfathered in and keep their current plan. All employees will be eligible to receive the discounts. This includes the cleaning staff who currently receives no discount. This new discount will also serve to attract a younger group of employees as you have stressed, as well as increase morale amongst our current employees. New employees will receive the revised employee discount. As employees leave the company, discounts grandfathered in, will become obsolete, thus saving us money in the long run. This will also prevent any adverse reaction from the current managerial staff. The sales from employee discounts only account for .04% of total sales and result in a loss of just .5% of net profits. Such an amount is not worth upsetting our executives and managerial staff over. This new discount plan will ultimately create revenue. Instead of some of our employees deciding to shop elsewhere because they either had no discount or