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Weekly Newsletter Vol. 96 - July 2, 2025

Generating your Lead Story…

How Salaries Shape Effort, Engagement, and Retention

Let’s talk about something every hiring manager needs to hear: salary decisions are not just about budget—they’re about performance. If your pay range is $60K–$80K and you offer someone $60K when they meet every qualification, don’t be surprised when you get $60K worth of effort.

Compensation sets the tone for how valued someone feels before they even step into your organization. And if they’re already questioning their worth on day one, how can you expect them to go above and beyond?

Consider this: a candidate receives an offer at $60K despite having every skill listed in the job description. They may still take the job, but the motivation level is muted. They’re clocking in, completing tasks, and clocking out. There’s no incentive to innovate, contribute beyond the role, or stick around long-term. The likelihood of things is that they are already looking for a new job opportunity.

At $70K, you’re closer to recognizing their value. The employee feels respected, fairly compensated, and motivated to do their job well. They’ll contribute with more consistency, but they’ll still know they weren’t offered the top of the range and that leaves room for disengagement over time.

Now offer that same candidate $80K. What changes? Everything. They walk in knowing they are seen as a top-tier hire. They’re committed. They go the extra mile, they contribute new ideas, they advocate for the company, and they stay longer. Why? Because you treated them like an A-player from the start. And when you invest in A-players, you tend to get A-level performance. That $20K difference isn’t a cost—it’s an investment in productivity, loyalty, and cultural stability.

Shortsighted salary decisions often come back to bite. You might think you’re saving money by offering low, but that savings vanishes in lost productivity, quiet quitting, or even worse—having to rehire in 6 months.

The cost of turnover (which can be up to 1.5–2x the salary) makes that $10K or $20K difference seem pretty small, doesn’t it? The truth is, when you undervalue talent, they either underperform or leave. Neither helps your bottom line.

The next time you’re extending an offer, don’t just ask, “What’s the least we can offer?” Ask instead, “What’s the offer that will unlock this person’s full potential?” Pay communicates value. And in this job market, people are listening more closely than ever. If you want top effort, offer top dollar—and watch what happens next.

You can’t make this stuff up

_{(*Disclaimer: these are real experiences provided by RME's community of job seekers and hiring managers)}

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