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I see people calling out Bezos for paying employees market rate for the job rather than diverting profits to pay above market. Often overlooked downside of paying above market is you get people sticking around who don’t want to be there, which leads to all sorts of problems.
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What types of problems does this typically lead to? This is my first year as an entrepreneur and I would like some advice on what to look out for. Any advice you have would be much appreciated.
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Effects of cognitive dissonance, extreme stress, resentment, abandonment of risk taking in favor of “just don’t get fired” attitude, increased deployment of HR shenanigans to keep job, disruptive efforts to change what they personally don’t like. AKA, why not date a gold digger.
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Thanks for the reply! That doesn't sound fun. How do you handle those situations? How big should the HR team be to keep people in line with the vision and the mission? Is there a ratio of HR staff per employee or anything that you use?