My Employees are Being Poached
Q: Some of my key employees are being recruited away from my company! We are located in northern New Jersey and recently, a few of my best performers who are in very key positions have been approached by a much larger company in Manhattan who pays New York area salaries (about 20% higher than ours). If we lose these employees, our company will lose a considerable amount of its institutional knowledge and be set back significantly. I feel completely blindsided by this, because I thought I was paying them well. What are my options???
A: This situation is becoming more and more common as employers start to discover a talent shortage for key skills and as employees start to test the job market after the recession to see what other options are available. You do have a few options.
First, you can pay them the salary necessary to keep them, which might mean paying Manhattan-area wages even though the wages are lower in New Jersey. You’ll likely need a compensation data from reputable salary surveys or help from a professional to determine that data.
The second option would be to let them go without a fight, but as you said the company would be set back, and it wouldn’t solve the problem – you will still need to look at your comp system.
Option #3 is to proactively assess your current compensation levels, company culture, and rewards philosophy through the services of an external compensation professional. Then communicate the fact that you performed a full market analysis to your employees. Many times, if employees know you’re looking out for them, they may be less inclined to jump ship, even when offered more money.
Read More Common HR Questions
MEA’s goal is to provide current, detailed and useful information to HOTLINE callers, but our responses do not constitute legal advice about what you should or should not do in a particular situation. You should always consult legal counsel, in the context of a confidential attorney-client relationship, before taking any action that could have legal implications for you or your business. If legal services are needed, MEA members are entitled to a discounted fee arrangement with the Powell Trachtman law firm, which serves as MEA’s general counsel. For more information, contact Michael G. Trachtman at mtrachtman@powelltrachtman.com.