“Despite a recent hike, we continue to lose people” said the worried senior executive. It transpired that his organization had made the mistake that many make. In an attempt to increase retention, they had implemented a pay hike ( which honestly they could ill afford) to hang on to their “people assets”.
In reality, they had increased their costs without getting anything in return. Many took the hike and asked the organization in turn to take a hike! The organization had, in effect, let loose in an already crowded market, highly priced people, many of whom did not really deserve the amounts they earned.
