As an employer, if you pay too much to your employees or contractors you are negatively impacting the financial health of your company.

You’re spending more on talent than necessary to get the work done. And you are limiting your ability to add to your team.

I have a client right now that is paying very high in comparison to the external market.

Is it too high? That depends.

What else could the financial capital be spent on? And would the return on THAT investment be better than the employees that it is being spent on today?
What are your short-term vs. long-term goals? How are your investments today aligned to those goals?
What can you control? What can’t you control?
Have you done some scenario planning so you know what decisions would need to be implemented if internal or external conditions changed?
What work is being done today? What work will need to be done in 1 year, 3 years, or 5 years? Where will you find the talent to perform these jobs?

If your HR and Compensation teams aren’t asking these questions, we should talk.

#pay #compensation #rewards #humanresources #leadership