- My competitors are desperate and are throwing money at my employees
- Recruiters are unfairly targeting my company
The first statement is generally less true than many owners think. Of course an employee is going to say they're leaving for more money. Sometimes it's true, but often they just don't want to tell you the truth - they can't wait to get away from the management and the culture at your company.
The amount of money it takes to lure an employee away from your company is directly proportional to the level of engagement they feel toward the mission and the management of your organization. If they like their boss, believe in the product or service, enjoy their current role, believe they have a future in the company, and believe they are being treated fairly, it'll take a pretty big number to lure them away. A number that your competitors are unlikely to offer if you're compensating your people somewhere close to market rates.
But if your company culture is unhealthy, the bosses treat people poorly, expectations are unreasonable, extrinsic and intrinsic rewards are insufficient, and positive feedback is nonexistent, then you better be paying people much higher than market rates. That's going to be your only defense against those recruiters.
Speaking of recruiters, the second statement probably is true. I know quite a few industry-specific recruiters. And they know which companies are ripe for the picking. If they are leaving voicemails for your A players, they know there is a reasonable chance they'll get a return call. They don't bother to call prospects at companies with great reputations as employers. The fact that they are aggressively targeting your company is a clear symptom that your employment brand is weak. And a weak employment brand not only affects retention, it affects recruiting as well. You'll have trouble landing A players because they know what you may be unwilling to admit.
Unfortunately, some owners are hesitant to make real investments in improving management and leadership skills and other engagement initiatives. They think a cookout at the 4th of July and a holiday party in December should be enough to buy employee engagement. But studies are clear - people join companies but quit bosses. Invest in improving how your organization manages people and who you're promoting into supervisor and management roles, and those A players will be more likely to delete that voicemail from the recruiter.
But if your company culture is unhealthy, the bosses treat people poorly, expectations are unreasonable, extrinsic and intrinsic rewards are insufficient, and positive feedback is nonexistent, then you better be paying people much higher than market rates. That's going to be your only defense against those recruiters.
Speaking of recruiters, the second statement probably is true. I know quite a few industry-specific recruiters. And they know which companies are ripe for the picking. If they are leaving voicemails for your A players, they know there is a reasonable chance they'll get a return call. They don't bother to call prospects at companies with great reputations as employers. The fact that they are aggressively targeting your company is a clear symptom that your employment brand is weak. And a weak employment brand not only affects retention, it affects recruiting as well. You'll have trouble landing A players because they know what you may be unwilling to admit.
Unfortunately, some owners are hesitant to make real investments in improving management and leadership skills and other engagement initiatives. They think a cookout at the 4th of July and a holiday party in December should be enough to buy employee engagement. But studies are clear - people join companies but quit bosses. Invest in improving how your organization manages people and who you're promoting into supervisor and management roles, and those A players will be more likely to delete that voicemail from the recruiter.
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