In terms of one part of your corporate Compensation Philosophy you can be a Pay Follower, a Pay Leader or Market Rate.
You never hear Pay Leaders complain about Turnover…
You always her Pay Followers complain about how Pay Leaders can actually pay that much…
Those who Pay at the Market always talk about how money isn’t that important…
HR and Compensation Pros will always talk about how it’s not about how much someone makes, it’s about the total compensation package. Ironically, those Best Companies To Work for tend to have the highest total compensation packages and be Pay Leaders. It’s a vicious cycle to get the best talent.
If your a pay follower you will never have the best talent. If you pay at market, you will never have the best talent for long. If you’re a Pay Leader you’ll have the ability to attract the best talent and the resources to hook them, but you still have to have the culture and leadership to keep the long term.
This is everything I know about compensation after 20 years of working in HR.
What have I learned?
I always try and work for Pay Leaders, otherwise you end up chasing your tail a lot within the HR world.
Consider yourself graduated.