"It's Hard to Hire Good People" - What You Can Do About It
Pay Higher & Hire Less Employees
You get what you pay for, even when it comes to hiring. And sometimes it is worth the extra money. This can work for contractors, outsourced work, and employees. You may even find that paying more for positions brings the total cost of labor down - because of the talent it attracts. Think of this as the 80/20 principle applied to hiring.
It may sound counterintuitive, especially when you are trying to keep costs low, but let’s explore this idea a little further to see what advantages you could find.
Quality of Work
When you offer to pay a higher wage, the top candidates will come out of the woodworks. These higher end candidates will most likely produce higher quality work (leading to less time spent reviewing the work to ensure quality). They care about the job that much more, and are driven to produce results.
Efficiency / Can Handle A Higher Workload
Going along with the quality of work, they can handle a higher workload because they work more efficiently. You may be surprised to find that a high achiever is able to complete the work of two average employees. They are driven and want to exceed the goals set forth for them.
Work Ethic & Attitude
Knowing that they are or will be compensated quite well, their work ethic and general attitude towards their work will be significantly higher compared to an employee being paid the industry average. They have an extra incentive to do so, and their sense of ownership for the work can be higher.
If the employees feel that they are taken care of financially (and it is a good work environment where their why is fulfilled and they have a sense of purpose), they will stick with the company. Reducing turnover reduces training expenses, plus it is a better experience for a customer working with someone who has been with the company for a decent amount of time. They will be able to handle issues with more ease, and their experience will help with efficiency.
Talent follows the money and purpose. There are exceptions to this, however if both of these are provided, great people will want to work with you. If you offer minimum wage for a position and expect to get outstanding candidates, you may get lucky and find a unicorn, but most likely you expectations are misaligned with what you are offering. Try offering higher pay and see what comes of it.
Is this advocating for a higher minimum wage? No! It’s simply putting out the idea that if you provide the best pay and workplace, you will attract the best candidates (and in-turn, the results may outweigh the extra cost).