A few days ago I talked to a great HCIT candidate weâ€™d placed years ago, just to catch up. We chatted â€“ did the small talk thing for awhile â€“ and finally got the real reason for the call. I knew it would eventually come out and boy, did it.
The conversation turned to compensation (as it does) and she told me about her deal. The base salary sounded fine when compared with her role and responsibilityâ€¦ and then I asked about her variable compensation or annual target bonus. There was a long pause, followed by (ok, me too) loud laughter at my question. â€œWhat bonus?!â€ she asked. â€œOh, you mean my â€˜shoe moneyâ€™? Shoe money? She explained that for the past few years her company had decided to award small bonuses (i.e. $1,500-$2,000) at the end of the year. Her implication (which I get) was that after she pays taxes on the small amount of money, whatâ€™s left barely pays for a newly touted â€œstaycationâ€ or perhaps a trip to the shoe store to buy a few pairs of nice pumps.
â€¢ Thatâ€™s it?!
â€¢ Are you kidding me?!
â€¢ Câ€™mon â€“ why bother?!
The company clearly needs to take a hard look at their compensation package and their 1% â€“ 2% target annual bonus plan. Itâ€™s a little low for this hot market. Itâ€™s a plan that just sounds bad and will never keep and retain the best talent in the company. I can see it now: â€œWork hard and meet all of your objectives and I see a trip to the shoe store in your future.â€ Actually, theyâ€™d be better off not paying anything. How demoralizing. What a joke!
Retention is a very big deal in the markets we serve and the battle for talent is already here â€“ that train has left the station. Find a way to keep great people or risk a void in your starting lineup. Itâ€™s not all about the money, either. People want to be rewarded for this hard work, but recognition, new and exciting challenges, teamwork, a great collegial culture also matter.
But getting back to the shoe-moneyâ€¦
What are your thoughts? Want the shoe money or should they just pass altogether? I would love to hear the opinions of the readers of HITT andâ€¦
Iâ€™d like to start with you Ms Darling.
Tell me how you really feelâ€¦. I already know you will!