Q1: Define the problem statement (the why and the what) in the following situation:

Employee loyalty

Companies benefit through employee loyalty. Crude downsizing in organizations during the recession crushed the loyalty of millions. The economic benefits of loyalty embrace lower recruitment and training costs, higher productivity of workers, customer satisfaction, and the boost to morale of fresh recruits. In order that these benefits are not lost, some companies, while downsizing, try various gimmicks. Flex leave, for instance, is one. This helps employees receive 20% of their salary, plus employer-provided benefits, while they take a 6-to 12-month sabbatical, with a call option on their services. Others try alternatives like more communication, hand holding, and the like.