Re:How much does employee turnover really cost?
by stubish on Wednesday January 18, 2017 @05:27AM
(#13425350)
The management seminar only told half the story.
Money isn't a motivator for doing better work. Once people are being paid 'enough', the studies showed increasing pay lowered performance.
The part they didn't mention is that money is a major factor in choosing who you do the work for. Of course you are going to haemorrhage employees if they get a much better deal to do the same job for someone else.
Companies that pay more will get to pick the best people from the talent pool, who may perform worse due to being overpaid, but the company still comes out on top because underperforming top tier employees still perform better than the remainders working for a 'standard' salary. And thus wages are driven up in industries where talent is at a premium.
Money isn't a motivator for doing better work. Once people are being paid 'enough', the studies showed increasing pay lowered performance.
The part they didn't mention is that money is a major factor in choosing who you do the work for. Of course you are going to haemorrhage employees if they get a much better deal to do the same job for someone else.
Companies that pay more will get to pick the best people from the talent pool, who may perform worse due to being overpaid, but the company still comes out on top because underperforming top tier employees still perform better than the remainders working for a 'standard' salary. And thus wages are driven up in industries where talent is at a premium.