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D Tide
Member since Mar 2012
392 posts

Paying employees to stay
With many companies putting a lot of effort into retaining employees. Why don’t they just pay them what it take to keep them when they get another offer? Is there fear that after a couple of years your payroll would skyrocket and you would wind up over paying for mediocre people?
Is the thought you’d rather have a B- employee for 60K than paying the A employee 80k


CE Tiger
Chicago Cubs Fan
Metairie
Member since Jan 2008
38311 posts

re: Paying employees to stay
if they are looking for other offers they have checked out and even if you pay them they still will be searching for other offers


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lynxcat
Rutgers Fan
Member since Jan 2008
20360 posts

re: Paying employees to stay
Pay isn’t the underlying reason why people leave.


LSU1018
LSU Fan
Baton Rouge
Member since Feb 2007
6695 posts

re: Paying employees to stay
I think companies do pay key employees to stay. Many employees view themselves as a key employee but in reality, there are normally very few employees that are that important.


D Tide
Member since Mar 2012
392 posts

re: Paying employees to stay
quote:

Pay isn’t the underlying reason why people leave
I would agree but , I think it’s why people stay. If that makes any sense


D Tide
Member since Mar 2012
392 posts

re: Paying employees to stay
quote:

think companies do pay key employees to stay. Many employees view themselves as a key employee but in reality, there are normally very few employees that are that important.
I would agree that this is probably the truth with that said why do companies “ act “ like keeping people is important


TheWalrus
LSU Fan
Memphis
Member since Dec 2012
22679 posts

re: Paying employees to stay
If word gets out your organization is constantly caving to these demands, it will embolden employees to make them. Can’t let the inmates run the asylum. If they meet the first demanded pay increase, won’t the employee just demand another one a short time later? When is it enough?

There have been a few people depart my company that were thought to be utterly irreplaceable and about three months after they left, it was like they were never there.
This post was edited on 8/13 at 10:16 pm


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130
lynxcat
Rutgers Fan
Member since Jan 2008
20360 posts

re: Paying employees to stay
Pay is not the primary factor your top employees are staying with a company. It is a factor but not the top factor in most cases.


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Weagle25
Auburn Fan
THE Football State.
Member since Oct 2011
37152 posts
 Online 

re: Paying employees to stay
quote:

would agree but , I think it’s why people stay. If that makes any sense


Don’t you see the problem that pay is not the reason they leave but it is the reason they stay (assuming that’s true)?

Then you’re paying an unhappy employee to stick around. Unhappy employees aren’t going to be good employees for long and you’re not fixing the problem they had with your company.


cave canem
Mississippi St. Fan
pullarius dominus
Member since Oct 2012
9574 posts

re: Paying employees to stay
quote:

Don’t you see the problem that pay is not the reason they leave but it is the reason they stay (assuming that’s true)?

Then you’re paying an unhappy employee to stick around. Unhappy employees aren’t going to be good employees for long and you’re not fixing the problem they had with your company.


not always

Money is not everything but it is certainly a large mass on the decision scale and all situations are different.

If we are discussing dime a dozen positions that is one thing but some folks in some jobs are in very high demand and are damn near irreplaceable, they can have a new gig in seconds.


Suntiger
USA Fan
BR or somewhere else
Member since Feb 2007
27031 posts

re: Paying employees to stay
quote:

Many employees view themselves as a key employee

quote:

in reality, there are normally very few employees that are that important.


This. And you can only pay employees what’s you can pay them. If I have a small profit margin, I’m not going to overpay employees to stay, I’ll let them walk and replace unless they are an absolute key employee.


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Weagle25
Auburn Fan
THE Football State.
Member since Oct 2011
37152 posts
 Online 

re: Paying employees to stay
quote:

Money is not everything but it is certainly a large mass on the decision scale and all situations are different.

I’m not denying that. If it wasn’t a big factor then they wouldn’t have stayed when I offered them more money. But obviously if I was already paying them well and they were willing to leave, there’s a another big issue that they have a problem with. I don’t fix that issue by paying them more. I’m just getting them to stay until they get fed up with that issue again which won’t be long.

quote:

If we are discussing dime a dozen positions that is one thing but some folks in some jobs are in very high demand and are damn near irreplaceable, they can have a new gig in seconds.


Not really sure what this has to do with my point.


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Displaced
LSU Fan
Member since Dec 2011
25933 posts

re: Paying employees to stay
Key employees are put on a retention bonus plan that offers a bonus after so many years.

My wife is 1/3 of the way through one right now. It basically stopped any job searching/talk of moving for us until September 2021.


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The Spleen
Alabama Fan
Member since Dec 2010
24982 posts

re: Paying employees to stay
quote:

I would agree that this is probably the truth with that said why do companies “ act “ like keeping people is important




Because turnover is expensive with wasted hours searching for a new candidate and training the new hire.

Most employers don't really care about their employees beyond what they can bring to the company. They're expendable. But they'll act like they do to retain them for as little pay as possible.


Monday
LSU Fan
Prairieville
Member since Mar 2013
3822 posts

re: Paying employees to stay
The real trick is to have a prosperous work / life balance for employees. Scheduled check ins or performance reviews are key to evaluating talent and productivity. Giving raises when possible and streamlining processes will lead to happier employees.

This is strictly for professional type offices, IMO. The plant worker types will always chase the money.


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LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
16613 posts

re: Paying employees to stay
Company A pays X. Company B pays X plus 15%.

Company A feels the employee, for the job they do, is only worth X. If you have a counter-offer situation, Company A is going to expect more out of the employee than what the employee is currently giving. That leads to all sorts of problems down the road.

This is why Company A will often let the employee walk, because they feel they can replace that person at the salary that person is currently making.


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