How to Keep Your "A" Players #7: Pay Them Market Value

Attracting and retaining talent is essential to scaling your business successfully. This is especially true for your “A” Players. Let’s continue visiting with our friend Frank.

Scenario #1: Frank was sitting in his office frustrated and fuming. “These guys are so cheap with my pay and benefits. I know darned well (Frank was quick to use the “darn” word at difficult times) there are companies out there paying more for the same role as mine. I’ve asked for a pay raise over and over, and it always falls on deaf ears. It’s going to be a pain to change companies, but I’m going to put my resume on the street.”

If you look at your team members as “cost” instead of “ROI,” then you’re missing a big opportunity for improving the financial performance of your business. This is just one more instance where “buying cheap” doesn’t give the best long-term results.

Scenario #2: Frank was sitting in his office frustrated and fuming. “The new guy sitting in the office next door is making more money than me. He doesn’t even have the experience and track record I have, and he hasn’t shown the loyalty to the company that I’ve shown all these years.” 

Yep, that’s salary compression in action. The members of your team who’ve been loyal over a period of time are unfairly penalized for it—or at least that’s how it feels to them.

I recommend that you proactively pay your team members their full market value without them having to beg for it. If you’ve hired the right kind of people, you’ll be more successful in your business over the long term. Turnover is very expensive, especially turnover of your “A” Players. Seriously, why would they even consider going elsewhere for more pay if you’re already paying them what they’re worth?

Don’t be a stranger. (770) 993-1129, tdockery@TheResolveFirm.com