Page 91 - Retaining Top Employees

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5

Compensation:

Why It (Almost)

Doesn’t Matter

We’re overpaying him, but he’s worth it.
—Samuel Goldwyn
A reward cannot be valued if it is not understood.
—Philip C. Grant
or many organizations, the entire concept of retaining top
Femployees boils down to one topic—compensation. “To
keep our best employees, we must pay them well” is the cry.
Well, up to a point, that’s true—but only as a negative. If you
don’t pay your top performers well, they’ll surely leave. But
only paying them well does not ensure that they’ll stay.
In this chapter we’ll examine the role of compensation in
retaining top employees and show how a well-designed com-
pensation plan can be important in retaining your top employ-
ees—so long as it’s designed properly and in conjunction with
the rest of your retention strategy.

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