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<<We have always hired entry-level or junior people at rather low salaries,
spent a lot of time training them, and then (no surprise) seen them depart
after a year or two for better-paying jobs.>>
This certainly suggests that salary is an issue, but you really should
contact some of these former employees to find out why they actually left.
You might be surprised. But on the assumption that salary really was the
problem, it occurs to me that you might simply have a communication failure:
did anyone sit down with the employees and tell them what they'd be earning
after 1, 2, and other years? If they've left after 2 years, it sounds like
you're waiting far too long to raise their salaries: they work hard, and see
no results for all that work (i.e., they start at trainee pay levels and
never progress). One thing that would help would be to clearly define their
salary progression, and to make sure the rate of progress is competitive.
For example, I'd suggest that initial training is complete after 6 months
(probably earlier), and they should receive a salary bump at that point,
plus another after 1 year. By the end of year 2, if they're still performing
well, they should receive another salary bump and no longer be considered
entry-level or junior (change the name, for the psychological benefits, and
change the salary, for the tangible benefits). Thereafter, they should
progress according to company policy (probably a cost-of-living increase
each year, and possibly greater increases if they perform exceptionally well
or the company does).
<<One of my superiors has always insisted that certain company traditions
like flexible work hours, casual dress, and bi-weekly free lunches go a long
way toward making up for our low salaries.>>
That's certainly true; I could definitely be earning considerably more
elsewhere. But if I didn't consider my base salary competitive and
satisfactory, I wouldn't still be here; good work environments are
increasingly common, and particularly so in high tech. (How many of your
departed employees have come back, begging for another job at lower pay,
simply because your company was so wonderful to work for? The answer to that
question is awfully revealing, isn't it?) You'll need to have a look at the
STC salary survey to determine whether your salaries are really anywhere in
the ballpark of being competitive, and if they're not, you'll have to raise
them. Talent is expensive! (Note: The STC survey, like any other survey, has
its flaws, but it's a good indicator of industry _trends_. Use it
judiciously, not blindly.)
<<The only perk I think we offer that really is worth some money is the fact
that we very rarely have to work more than 40 hours a week.>>
Works for me; I will no longer work for a company that consistently expects
me to put in an extra 20% of my work week for free. I work to support my
life, not vice versa. And at that rate, they damned well better hire a temp.
(That's not to say I won't do overtime; an occasional Sunday or weeknight
comes with the profession. But if they require an additional 20% of a normal
work week every week, that's a sure sign of a staffing problem.) Your other
perks are all great, but none of them pays the rent, and if employees can
get the same benefts elsewhere, plus better salaries, they're going to
leave.
Here's a seditious suggestion: Ask your Personnel Director (PD) to call his
colleagues at other companies in your area to ask about their fringe
benefits. (Or do this yourself if you've got time. Network with the STC
members in your area, or call local companies and ask to talk to their
writing department if you're not an STC member.) Strangely enough, PDs have
their own secret societies, just like STC <G>, and often exchange a
surprising amount of "confidential" information; probably not salaries, but
certainly info on intangibles such as informal dress. (I have this on good
authority: from a PD I used to work with.) This will give you considerable
hard evidence about whether your benefits really do make up for lower
salaries.
"When ideas fail, words come in very handy."--Goethe
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