Taylor, Travis, SuperBowl

Heading to Vegas for the SuperBowl? 

I’ll be there.

...Watching on my sofa.

Crowds just aren’t my thing. Not to mention the $10,800 per ticket, highest average price ever for a Superbowl.

They say part of the fervor is that this is the first-ever ‘big game’ in Vegas. I guess people can justify paying a premium for a bit of extra sin.

But I think the nutty price tag is actually the speculation over whether Taylor Swift will attend in-person. (Just like you, she’s still on the fence.)

Her beau Travis will be on the field. And she’d love to be up in her luxury box. But she’ll be belting it out in Tokyo for her Eras Tour. Someone actually ran the numbers on whether Taylor can make it to Vegas in time for kickoff. (It’ll be close, but it can be done.)

Speaking of paying top dollar…

Quite a few of our clients say they’re happy to write a blank check & pay “whatever it takes” to land the right candidate.

But 3 decades of recruiting has taught me that strategy can be a mistake. Oh sure, it’ll land the candidate. But is it truly the right candidate? And will that candidate stay?

Breaking the bank for a candidate often attracts people who are coming for the money, not the mission. And that’s not a good thing.

Imagine you're at a Taylor Swift concert, absorbed in the music.

Now, think of your business as a concert where you're the headliner, and your employees are the supporting acts. You want to create a harmonious blend, a team that resonates with your company's mission, not just the paycheck. But if you set the compensation stage too grand, like a VIP backstage pass, you might just attract those looking for a glamorous experience, not a long-term gig.

Let’s harmonize the need for a thoughtful compensation strategy, with a nod to why paying at the 75th percentile could be the "Gold Rush" for sustainable talent acquisition.

The dangers of overcompensation: It’s more than just a "Love Story" for a few reasons:

Short-term encore: Overpaying might bring a dazzling performance in the short term, but like an encore that ends, so might the commitment of those who came for the money, not the music.

"Invisible String" of culture fit: A team should be like a well-composed song, each member in tune with the others. Overpaid individuals might not always harmonize with your company's culture, leading to discord.

Creating a "Delicate" situation in equity: High salaries can set a precedent, making other team members wonder why their compensation doesn’t sing the same tune.

"Out of the Woods" financially?: Just like an extravagant tour can strain a musician's budget, overpaying can be a financial burden, especially for businesses not yet in the stadium tour league.

Crafting a compensation philosophy: "Call It What You Want"

Mission-driven harmony: A robust compensation philosophy ensures that your salary offerings are more than just numbers. They reflect your company's values, like a lyric that tells a story.

Competitive yet "Calm": This approach keeps you competitive in the talent market, without entering a bidding war that turns your payroll into a battleground.

Equity & transparency: the "Clean" approach: A clear & fair compensation structure is like a well-written chorus - it's straightforward, memorable, and something everyone can get behind.

Embracing the 75th percentile: a "Wildest Dreams" scenario

Balanced "Style": Paying at the 75th percentile strikes a balance - it's appealing enough to attract skilled performers but not so lavish that it overshadows the mission. This means paying more than 75% of other businesses for the same role, experience, and qualifications.

Attracting the right "Band": This strategy ensures you’re appealing to those who are in it for the right reasons - a blend of fair compensation and passion for the role.

Staying "Fearless" in the market: It’s about understanding the industry's rhythm and ensuring you stay in sync with the market, without trying to outdo every act in town.

Offering top-tier salaries might seem like a ticket to attracting the best talent, but it’s a strategy that can have its pitfalls, akin to a sold-out show that leaves the artist exhausted and disconnected.

By developing a thoughtful compensation philosophy and targeting the 75th percentile, you can attract dedicated professionals who join you for both the performance & the passion, ensuring your company's journey is a chart-topping success story, not just a one-hit wonder.