Our reader poll today asks: How well-compensated do your team members feel?
- They feel like they’re very well-compensated 6.96%
- They feel like they’re fairly compensated 46.96%
- They feel like they’re not competitively compensated 33.91%
- They feel like they’re poorly compensated 12.17%
Are they going to leave you? 46% of you report that your people don’t feel fairly compensated. While some companies are economically challenged and can’t afford higher compensation, others have to be careful with the message they send about record profits or strong economic performance with wages that aren’t catching up. In a tight labor market, you’ll find yourself without the staff you need. Employees will grow resentful especially as inflation erodes their purchasing power while they see their executives rake in massive amounts of compensation based on their employees’ efforts. The next time you’re hesitant to give someone a raise because you feel it’s “too expensive,” ask yourself how much it would cost to lose that person and try to replace them. The math clearly tells you to focus on retaining them even if it costs you a little bit of money.
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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.