“Can you match the other offer?” I asked.
“Not a chance. Our business model isn’t built around that kind of compensation. We don’t have those deep pockets,” Ray replied.
“Then you will lose them,” I nodded.
Ray was quiet. “There’s nothing I can do?”
“No, you are going to lose them.”
“But, I could lose my whole team,” Ray protested. “There must be something I can do.”
“Accept the fact that you could lose your whole team.”
Ray sat back, his eyes slowly went to the ceiling, staring at a corner. “Okay, so what do I do?”
“First, look at your roster, this list of people on your team. Would this other company really come in here and hire every one of them with an offer to double their compensation? For real?”
“Well, no, there is only one person, who worked for them before,” Ray was ticking through the list. “And they are truly an A performer. They probably deserve what they were making at the other company. We just couldn’t match it here.”
“So, let’s say your team does become a target, the offers are likely to be competitive, let’s say 3 percent better. What can you do to retain your team?”
I would suggest Ray meets with every member on the team and assesses the value chain of each individual. Who are they and why are they working here?
There is a good chance that, if their business model isn’t built around industry leading compensation, then they aren’t working there primarily for compensation in the first place. Getting a sense of what employees value will help you be able to meet their needs in the areas that you can control (team building engagements, training, opportunities for advancement). Once you meet their needs in these areas, the relationship will hopefully be strong enough to withstand the lure of several thousand dollars a year…
…and if not, then they were going to leave eventually anyway.
Cheers
Mike
Hi, Michael,
Send my best to everyone at Si Systems. Your description of “getting a sense of what team members value” is critical, yet most managers don’t understand that part of their role as a manager. Thanks for posting. Keep in touch.