How Competition Makes You Stupid
by Miki SaxonI’m sure many of you saw the story abut the escalating talent war between Vmware and Google,“Trip Chowdhry, an analyst at Global Equities Research, estimated that Palo Alto, California-based VMware is paying $130,000 to $160,000, plus stock options –compensation that only Google can match, he said.
The programmers I know say that most offers are still tied closely to industry averages and that no one “wants to see the craziness of the ’90’s again”—except, of course, the programmers who are getting those salaries and the ones who feel they should be.
But many managers will still blow their in-house salary curves and start throwing in sign-on bonuses and other perks when chasing talent, totally ignoring the proven adage that “people who join you just for money and stock, will leave you for more money and stock.”
When the talent market gets tight is the time to remember that the best performers didn’t necessarily
- have the best grades;
- attend a prestigious school;
- work for your competitor or
- even in your industry;
- have a full head of hair that has no gray; or
- fits easily into your comfort zone.
This is the time when your hiring skill really matters; when your ability to recognize jewels where others see only lumps of coal.
Real loyalty can’t be bought with either money or stock options, it’s earned through your actions, your willingness to take a chance, to provide the place where the coal has the opportunity to become a diamond.
