Does Money Buy Loyalty?
Posted on 8th November 2022 by John McCluskey
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As we all know, demand is out stripping supply in all sectors, including the professional staffing industry. There are more jobs than trained people so what’s the answer to solving the workforce shortages in all our industries including recruitment. John McCluskey writes.
Surely the first answer is to pay people more to attract them into our organisations? But does this mean we are buying loyalty or just attracting someone through the front door, and will they stay? What happens if another enterprise offers them more a few months later, will they stay or go?
No matter how experienced someone is when they enter a new organisation there is always a period of knowledge transfer and familiarisation. What happens if the person who has been loyal suddenly finds out that the new person, they are training is being paid more than what they are?
How far will their loyalty extend? So, if you bring someone new into your organisation doing a role similar to a current valued employee, we better ensure their pay is adjusted as well. One new hire could cost you many current hires if you don’t get this right, making that initial hire a very expensive cost to the business and they might not even work out.
So, are there any alternatives? We have found for our business bringing in new people in at entry level positions and promoting within has worked better for us.
Sure, there is a greater lead time, but people are more inclined to develop and mentor junior/trainee staff, than senior peers that are paid higher. We have also found bringing people in from other industries seeking career changes has proven rewarding and our existing staff have grown from the mentoring opportunities.
People seeking career changes are usually very grateful for the opportunity and the belief you have shown in them, and this can often be repaid to a good employer with loyalty.
*This article originally appeared in the APSco Recruitment & Co 2022 Spring edition.