Everyone knows you get what you pay for, but few operate that way. More often than not when I’m asked for a marketing strategy / business plan proposal from a new entrepreneur, I can almost hear the loss of breath for a moment once they get to the “fees” area.
Here’s the reason why great people cost money. Great companies know that “the systems run the business, the people run the systems.” Yet, without good systems (i.e. in a startup situation), even better people are required.
You cannot expect superstars to work for below average wages. However, because many CEOs have occasionally gotten a bargin on an excellent employee, they make their pay strategy a “lowest bidder” competition. You simply cannot recruit and retain good people for low-dough. I add the word retain because it costs even more to keep replacing people, retraining for the position, your lost time and energy, etc.
If you do not pay market rate for good people, you will only get the bad ones. If you fill your business up with mediocre performers, good performers will not want to work for you. Winners attract winners. Period.
