Comments on: Must employers really pay to play?

Authoria CEO Tod Loofbourrow writes that with the U.S. in the middle of a talent crisis, too many companies are being tempted to overpay.

[CompEng]

Boo hoo

Maybe if companies still believed in training, planning ahead more than 5 years (heck, even that long), or hiring smart people rather than just-in-time skillsets, they might not have to spin this little road bump as a crisis.
Considering the short term thinking and herd mentality of American business, I don't think the current round of management has really set the bar that high anyway. Although that is really a product of the nearly lassez-faire capitalist incentive system, isn't it?
Anyway, considering how corporate lobbyists have helped screw the American worker, I have a distinct lack of sympathy that senior management predicts a shortfall of younger buddies.

[TomboSlicko]

Stupid CEO as usual

Companies, especially the large ones, do not get much talent because nobody really cares about any goals or success of the company. It is all about me looking good and my next pay increase. The companies do not value employees that are successful and usually try to belittle them because they make others look bad. I am very happy for Sarbane-Oxley , the failure of immigration reform(B1B program hurt), and other way a big corporation is made to suffer. The only thing left for them to do is file lawsuits and use mob tactics on the smaller innovative companies. Corporations go over seas for talent as an excuse for an ineffective work force that they created domestically. Small companies and startups here blow away overseas companies. I mean why could not Microsoft or IBM make a Facebook website? You need motivated people for that. Whats the motivation when you have someone writing an article that we overpay people. I think if I make a company millions I deserve some millions too.

[alflanagan]

Love it

I'm always amused to see employers complaining about a shortage of talent. The real problem is a shortage of talent at the price they're willing to pay. Spread some of those $10 million dollar CEO bonuses around on the people who actually produce what your business sells. You'll get the talent. And just maybe standards of living will start to rise again.

[baike]

no doubt

If they want motivated employees, if they want employees who demonstrate ownership and commitment and all that good stuff like passion for a job well done, then they need to stop the crazy disparate levels of pay. The differential between the bottom and top hasn't been this big since the robber barons of old.

Flatten the compensation scale and results will show up. Why does a CEO or CIO need a 10 million dollar bonus? Why should I bust my a@@ so he can win the lotto every year? Whats the point of that? What does he really do anyway? Why not divide that money among all employees and see what happens. Raising the bottom of the organization will have 100 times more impact to the quality of work in an organization than raising the pay at the top.

[fred dunn]

Then Come the Lay-Offs...

The same thing happened in '98-2000 during the Y2K hiring craze. One Large Insurance company (which will remain anonymous) was offering almost double but at least 50% more than what they were making at large reputable companies. We being a university lost a lot of talent to them.
BUT then came mid-2000, after the crisis was over and immediately 1200 people were layed-off. There were subsequent smaller grouping layoffs after that almost up until the present.
Pay talent but don't break the back of the company doing it. For those that are looking at another job and find one that pays a good deal more than the average than you can bet there will be a price to pay later.
If you don't mind job hopping then more power to you, go for the highest paying enterprise that barcodes your forehead. Otherwise remember you are only worth what you can contribute to the company. If you bargain them up too high then they will just use you as long as they need you and then let you go.

[Too Old For IT]

About time

All the passed over older guys (35-45 then, 50-60 now), kicked to the curb dot-comers and so forth are just sitting on the sidelines. Running their own companies, out of IT altogether, we laugh at silly companies lead by over-compensated CEOs now scrambling for talent.

Talent is out there, doing something else. And no company ever got out of a need-to-pay-to-play situation by giving the CEO a bigger package.

For the right money, talent will come back to IT, students will choose it as an education path, and so forth. Forget "total compensation", just show me the money ... and a low-paid CEO as well, because C-Level management is just there for show anyway.

Show mw a place where line managers have a depth of experience the brought them there. Show me a place where idiot managers are cut out and fired.

And the money, let us not forget that.

[chash360]

Throwing money at management does not work

Upper managers and CEO's are getting more and more pay. Meanwhile lower tier employees (you know, the ones that actually have the skills, training and do the work), have only seen their pay remain flat or decrease, benefits like health care have continued to decline, and cost of living has definately increased. The unemployement numbers lie, the numbers only reflect those recently unemployed, and after unemployment benefits run out, their numbers drop off count, even if they are still not employed. There is no shortage of skilled labor, but there is a fear of outsourcing. Who wants to spend thousands on a degree, or career in IT when companies just ship the jobs overseas? The numbers don't add up, and they have tried to hide it by classifying fast food workers as 'manufacturing' jobs. If you take away the fast food workers you will begin to realize that corperate and political America has sold American workers out to the lowest bidder. I make only 2/3 of the going rate for someone of my qualifications in my position, the only reason I put up with that is that I like my job, and I don't really have much other choice where I live. We complain and complain about the lack of raises and cost of living increases, and upper management just lines their pockets, and large shareholder pockets, with the money that would retain talented employees. When you need talented, skilled employees, you are not talking about management. Management does not get the work done, they (hopefully) provide the proper environment for the work to be done. They have been doing a lousy job at it, becuase they won't do the one thing that will work, pay your skilled work force. Does any Fortune 500 company offer true profit sharing anymore (percentage of net profit going to every employee in good standing). No, this too has gone into upper management and major share holders hands, with no sign of changing. I have already saved my employer more money than they will ever pay me in my lifetime, with my talents, skills, quick thinking, and efficient use of resources. I have nifty little printed awards around my desk, and thats probably all I will ever get, unless the culture changes. I Love my work and my job, but believe me, if the compensation situation does not improve, the moment I can make a go of it, self employed, I will. I have already begun my plans because there is no more job security, no matter how talented and skilled you are, it won't protect your job, when the board of directors decide they can no longer suck enough money out of the company the way it is, and decide to ship your pathetically paid (premium in their eyes) job, to a third world country sweat shop.

[Renegade Knight]

True except...

Sharholders also get screwed over. The ongoing focus on goals that can be tweaked in the short term by harming the long term causes everbody to get screwed over EXCEPT managment who can point to their goal and say "I made my numbers" then collect the bonus, look good, and move on to another better paying job while leaving behind a legacy for the next Short Term thinking manager.

I think you could take any line manager who tries, and stuff them in an Executive spot and do better overall if you could spare them from the corporate politics which are the only things modern managers are good at.