This employee retention speaker and employee retention expert was talking with a friend who works in an industry where employees rely heavily on tips as part of their compensation. She had previously worked on the floor with people doing similar work, so all tips were pooled and split between the people. In the opinion of this employee recruitment expert, that is not necessarily the best way to compensate people. Why should the Clydesdales carry all the other people? The problem is the Clydesdales get fed up and either slow up or decide to quit and go where they are compensated fairly…fair means top performers get paid top pay!
In this particular case, my friend was promoted because of her performance and now takes care of the organization’s best customers. Then they tell her that all of her tips must be split with the other people. What? She receives no assistance from her colleagues yet has to now share her tips with people who don’t perform nearly at her level. Needless to say, she is pi**ed. I encouraged her to go in and talk to HR about the fairness in this. If they decide to not fix the situation, she will probably stay for a while until the situation eats away at her and she can’t stand it. At that point, she will look for another job where they pay her for her top performance.
Paying in this manner is not the culture an organization wants to build. You want your top performers taken care of. Why? Because if you don’t, eventually you will not have any top performers left. Then, depending on the community your organization is located in, word gets out that this is a place that doesn’t take care of top performers, so you no longer attract top performers. For that reason, take care of your top performers as part of your employee retention strategies.
It is the experience of this employee retention trainer that organizations need to take a strategic look at their compensation plan to ensure the compensation plan fits in with their employee retention goals. All too often, we simply pull together the compensation plan with little thought to its impact. That thought process needs to end!
Remember…Give Your Employees C.R.A.P.® Why? Because C.R.A.P. Works!
Are you concerned about the employee turnover you are experiencing? If so, email me at firstname.lastname@example.org to find out how I can help you lower your employee turnover by 40-80%.