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A man’s work is his dilemma his job is his bondage, but it also gives him a fair share of his identity and keeps him from being a bystander in somebody else’s world.
-Melvin Maddocks
Is your best value proposition to your work force that they will get a paycheck a couple of times a month – at least until the next set of layoffs? If so you may be in trouble. Maybe big trouble. Unless the paycheck is much better than what is available in the market, the value proposition is shallow and will only last until offers appear which provide a better value proposition set. I’m sure that the people in HR will provide you the necessary compa-ratios to decide the salary ranges and keep you at the lvel of competitiveness you desire to have in the market, but that is not enough.
Your value proposition to your employees goes well beyond salary. Although benefits, bonuses, equity sharing and other forms of compensation are all forms of value proposition, there are many other types of value propositions which you may offer your workforce. Working on leading edge technology, autonomy to run your own department, getting experience in an area which is hard to come by, being mentored by a respected person, working with people you admire, flexible schedules, work from home, able to bring your pets to work, etc. are all value propositions which may appeal to a group of your employees.
It is common for different levels of your company to receive a different set of value propositions. In addition to greater levels and types of compensation, there are also other value propositions which come into play. Use of company car, more valuable health insurance, first class travel, etc are value propositions which become expected with certain positions. Pareto’s Principle, or the 80/20 rule, exists in every IT departments I know. One of your decisions will be around the set of value propositions you have for the varied levels of contributors in your work force. Do your star performers receive a different set of value propositions? Sports teams struggle with this all the time.
The value propositions will change in good and bad times. They will change with new and existing employees. Like a healthy ecosystem, it is necessary to have harmony between the employees realization of the value propositions offered (not the promise of the value proposition) and what is being asked of them. Like in nature, a system which is out of balance will not last. If the value propositions are not realized, or not sufficient to meet what is being asked, they will move to a place where the value propositions are in balance with what they are providing.
This is a timely article when value propositions are very low due to layoffs. I agree that people will want to move to a job where the value propositions are high.