Pay Attention to Your Pay Practice

Amazon made news last week by raising all employee pay to a minimum of $15. No doubt this was in part a political move to take pressure off after reports of low pay and difficult working conditions. But it’s also a smart move at a time when unemployment has reached historically low levels and it’s difficult to find people to hire.
I often counsel companies in ways to attract and retain employees, and when doing so I usually assume that pay rates are competitive. However, these days you cannot just assume that pay is competitive – you need to know where your pay practice stands.
Most of all you have to be concerned about keeping your high performers. Having a good boss, good working conditions, and growth opportunities are important, but the specter of more take-home pay is always compelling and the cost of losing good talent is significant.
Those costs include advertising, interviewing, reference checking, the cost of having a vacancy, as well as the costs of training and bringing a new on-board and up-to-speed.
We’ve had a long stretch of very low pay increases and controlling compensation costs. Don’t get complacent about it. Employee engagement and diversity initiatives are important, but pay is fundamental and can always be tempting.
Are you ensuring competitive pay practices?
Copyright 2018 Bob Legge
I am a trusted advisor on strategy implementation and executive effectiveness to leaders of Fortune 500 companies, mid-size companies, nonprofits, education, and government. My work helps leaders drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.
If you want to seize new opportunities, dramatically improve your leadership effectiveness, and free-up more time for yourself and your family, give me a call.
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