“Trouble in River City,” Ray warned.
“How so?” I replied.
“In 2008, we hired a person, who I thought was overqualified for the position. They had more experience than any on our team, previously worked for another company at double the compensation, but they had been laid off and I said, what the heck.”
“So, what’s the problem, now?”
“They have been a remarkable team member, always on time, always doing helpful things beyond their job description, coaching other team members through difficult problems. Their old employer just called, layoff is over, old job available at double our compensation. I got notice.”
“So, what’s the problem?”
“I want to know how I can prevent this. It’s probably going to happen again. Things may still appear bleak, but some of the monster companies look like they are rebuilding. I am afraid they are going to raid my people, and they have the deep pockets to do so.”
Well, just give them the same compensation they had before! Of course if you offer them less money, why would they stay with you? Its simple as that.
I wouldn’t get into a bidding war. If all you could afford was what you hired this person at, let them go.
Looks like we have conflicting opinions here.
There are a lot of ways to keep employees without getting into a bidding war. People will work for a lot less money if they feel valued, part of a team, and know they’re part of a mission that’s important and bigger than themselves. Invest in them as people, discover what their own dreams are and help them realize them through your organization. You can make it really hard for them to leave for “just more money.”
John,
I had this direct discussion with a group of executive managers, pulling them to your conclusions. Your description is not just a suggestion, but the most powerful and effective method of building a team. Thanks for posting. Keep in touch.