I really liked this post, because I think we often forget that our discontent or dissatisfaction with our jobs can be traced back to a lull in the business or a lack of opportunities or questions not answered. Thanks for the perspective on keeping our jobs at the forefront and working to create opportunities that support the best possible partnership between employer and employee.

I agree with your points. Sometimes employers can be penny-wise and pound-foolish. I’ve seen managers who wouldn’t give a guy a $1,500 raise that was justified, only to spend more than that in lost opportunity costs and paying the former employee’s replacement enough to attract them to the company.

Thanks,

Mike

I have had the misfortune of working for too many employers who felt that their job was to minimize compensation and only reward those who quit with adjustments.

Compensation is never the number one item on job satisfaction surveys, however it is important that employers constantly monitor all factors related to job satisfaction. If you like your employees tell them and show them.

That said, I have strayed quite a bit from the intent of your original post, which I appreciated.

Great questions. Actually, aiming for the midpoint is a general rule. If someone is an outstanding performer, then they will likely be in the high-end of the range. In addition, variable compensation (e.g., bonuses) is another way to reward high performers.

Turnover is something we watch very closely. However, we have cut it in half in the last few years.

Thanks,

Mike

On your comment that you try to be at the midpoint of the compensation range for a position, do you find yourself losing your stronger performers because, by definition, they are making only average compensation for their jobs (and now, by virtue of this post, they know that’s how your organization values them)?

Thanks,
Bryan

I agree with most of what you have said on compensation. I have never asked for a raise that I can remember. I have sometimes had to remind a busy boss to submit the paperwork for the raise they promised. (And, frankly, I have had to be reminded of this on occasion, too.)

I’m not quite sure what you mean by “it is a duty of the employer to always compensate an employee to the maximum level they are willing too.” Personally, I think the free market is the best corrective to this. If a company doesn’t pay people competitively, they won’t retain their people. On the other hand, the employee is always free to try and find another employer who will pay him what he thinks he is worth. At Thomas Nelson, we try to do formal job pricing, so that we truly know what a job is worth. Our goal is to be at the mid-point of the range.

Also, I have never seen a job satisfaction study in which compensation was the #1 factor. I don’t think I have ever seen where it is even in the top three! Obviously, the less I enjoy my job, the more you will have to pay me to do it. But, I think we have to consider the total package when looking at the benefits we receive from our work.

Thanks for taking time to comment.

Mike