We’re underway in an ongoing series on how to keep your best people from walking out the door and over to your competition. So far I’ve talked about giving sincere praise often and buffering your staff from bureaucracy. Today I want to get to a much more practical topic – money. If you want to keep your best people, pay them fairly. Did you notice that I didn’t say “Pay them well” or even “Pay them a lot”. I said pay them fairly. “Fairly” means equivalently compared to their peers. And keep in mind that “fairly” is in the eyes of the beholder.
A lot of people think that the best way to keep people is to pay them more. And believe it or not, it’s not true. Now let’s be clear. You can’t get away with under-paying your folks (because they’ll walk, particularly the good ones), but once you pay them at a level that they perceive as fair, the research unequivocally shows that it’s not the money that will keep them performing at above-average and exceptional levels. Continue reading