A time-tested axiom, it has both positive and negative connotations. If you spend the most you expect the most, and contrarily, sometimes if you try to be thrifty you end up with less than stellar results.
It is a spectrum though, and sometimes spending high does not get you what you wanted, and there are deals to be had out here if you do your due diligence.
As I reflect on the current employment market out there, getting what you pay for comes to mind. Every manufacturer I know is struggling to hire the people they need. To satisfy their shortage of candidates, some have resorted to money solving the problem.
There are referral programs, there are also sign on bonus programs. The dollar amounts offered for both are escalating rapidly. Whether they work or not is up for debate.
I draw the analogy to our customer growth, where PlastiCert does not “buy” business. We do not lowball our initial quotation hoping win the customer and increase prices over time. Conversely, we do not have the margin to succumb to overt price cutting pressure to “save the business”. Those two kinds of customers are not the type we desire to partner with at PlastiCert.
The same rings true with our coworkers.
Offering a large incentive to get a friend to refer someone or offering a large sign on bonus to leave your current employment and jump to PlastiCert, appeals to the type of coworker that may not fit in with what we are looking for at PlastiCert.
We strive to create an environment that results in longer tenures or a decision to join our ranks. Having won two national awards for workplace effectiveness and flexibility, (being one of the few manufacturing companies so recognized), we think that we have created a positive environment. Combined with a competitive pay structure, we are looking for people that value more than just money, people that recognize the contribution they make and take pride in that contribution. Getting a coworker that is incentivized by money, leaves you open to another organization willing to pay even more than you are. Perhaps because of desperation, perhaps because they cut corners elsewhere. In either case, loyalty based on money is like walking on a thin layer of ice. More importantly, our operators put parts in their box and are next seen by our customer. They are one of the most important people in our plant. I would prefer that their first motivation not be money but exceeding our customers’ expectations.
You get what you pay for, then again, you may not. The operative word there is pay. Create an engaging and supportive environment, get your people talking about it, and the situation will prosper.