Employee Terminations at NorthEastern Mutual Life Introduction to the Problem For four years, the return on equity at NorthEastern Mutual Life, which is based in Calgary, had been on the decrease. This meant that the company’s investors in this important insurance company were not happy at all. The good news was that the company’s revenues were continuing to go up and payouts to their insurance clients had gone down. The bad news was that the company’s strategy for its human resources was not planned out well, and the company was suffering as a result. The company’s work force was beginning to get older, and the company was taking on more expenses related to their higher salaries and pension plans. What this meant is that even though sales...The end:
.....d the process of restructuring to make positive changes. This choice for NorthEastern Mutual Life is the one that demonstrates the most obvious ethical principals in addition to the most financial sense. The company will not be able to meet its objectives to serve its customers and build up revenues if it does not consider the needs of its employees. Making this choice carefully and offering a fair transition to older employees will help to build company morale. NorthEastern Mutual Life’s other options do not include this level of ethical consideration. To become sustainable over the long run, the firm needs to make a positive change. Referenceå Mark, K. (2002). NorthEastern Mutual Life: Preparing for Employee Terminations. London ON: Ivey.