Member-only story

How Should You Think About Employee Compensation?

brett fox
3 min readNov 10, 2020

“Hi Brett, it’s Carlos. Uh…”

“What’s the issue, Carlos?” I asked our HR VP.

Picture: Depositphotos

“You know the salary you wanted to pay your new engineer, Fred? “Bob” (the CEO) wants to reduce it by $20,000.”

“You’ve gotta be kidding,” I said. “I thought the offer was approved.”

“What can I tell you,” Carlos said. “Bob changed his mind.”

“Unbelievable,” I said laughing sarcastically. “I’ll try and sell it, but don’t hold your breath.”

I paused and said, “This is how you screw up a company.” Then I slammed the phone down in disgust.

You can’t expect to hire A players if you pay them C player salaries.

I hung up the phone with Carlos, and I mentally prepared myself to speak with Fred again. I knew it was a fools errand, but I didn’t have a choice.

I called Fred, and I told him there had been a mistake in his offer. The offer would have to be reduced by $20,000.

Fred reacted as I expected him to. He would take the offer he had from our closest competitor.

I let Carlos know that we lost Fred. Then I asked him why Bob would think of reducing an extended offer.

--

--

brett fox
brett fox

Written by brett fox

I work with startup CEOs to help them grow their businesses . I built several businesses from $0 to >$100M. Learn more at https://www.brettjfox.com

No responses yet