How many times have employees approached you asking for a raise because the competitor across the street is paying $1 more per hour?
Living in the “oil and gas” marketplace we have seen this trend come and go many times over the years. Currently we are in a down market and most people are just grateful to be employed but you can bet when the price of oil comes back we will be back into the pay escalation trend very quickly!
Many times as business leaders we get caught up in a moment of panic when our prize employees are threatening to leave us and walk across the street to a competitor for a few bucks more per hour. I think we have all been guilty of capitulating and matching or marginally beating the competitive offer. We breathe a big sigh of relief and the temporarily happy employee gets back to work . . . until the next offer hits their desk! So, what should we do when this happens?