Everybody loves a good sized paycheck, and if you want to get the best people on board, you need to pay more than your competitors, right? After all, onsite dry cleaning and lunchtime yoga can only go so far in attracting the top talent.
This, of course, is true, but there’s a downside to paying above market rate: You create prisoners.
What is an office prisoner? Consultants Aon Hewitt describe it as “people who stay at their jobs despite feeling unmotivated, disengaged and generally negative about their employers.”
Fortunately, these people make up only about 8 percent of employees–still enough to be a drag on your company, though. Most employees who become dissatisfied with their job move on, but some stay, and those people are a drag on productivity and morale.
One company that Aon looked into, found that among those who fell into the “prisoner” category, 61 percent received salaries above the market rate.
To keep reading, click here: Why High Salaries Can Be Bad for Your Business