You Are Not Going To Win On Pay

Talent and Hiring8 min read

You Are Not Going
To Win On Pay.

So stop fighting on the ground where you lose, and start competing on the one thing people will trade a fifth of their salary for.

I should declare an interest before I say any of this.

I run healthcare staffing organisations. Which means that when a nurse leaves your permanent role for a travel contract that pays more, there is a decent chance she is going to work for somebody like me.

In a sense I am the thing you are losing people to.

So take this as coming from somebody who sees the other side of that decision at volume. And what I can tell you, having watched thousands of those conversations, is that the people who leave are not all chasing the rate.

A lot of them are leaving to get control of their own week.

The war you cannot win

If you are a regional hospital, a rural facility, or a long term care organisation, you are not going to out-pay a large metro system. You are certainly not going to out-pay a travel contract.

And your candidates are not comparing you against the hospital down the road any more. They are comparing you against systems in other states, contract work, outpatient roles, and increasingly leaving clinical work altogether.

You cannot win that comparison on money. Every hour spent trying to is an hour not spent on the ground where you could actually win.

The good news is that the ground where you can win turns out to be worth a lot more than most leaders assume.

They are not all
chasing the rate.
Many are leaving to get
control of their week.

What people will actually trade money for

Two economists, Alexandre Mas and Amanda Pallais, ran something better than a survey. They ran a real experiment inside an actual hiring process, offering applicants for a national call centre genuine choices between a standard role and alternatives, with the wage difference varied at random.

That design lets you see what people will really give up, rather than what they say they value.

What the research shows

The average worker was willing to give up 20 percent of their wages to avoid a schedule set by the employer at short notice. Even the least sensitive quarter of workers would surrender 10 percent to avoid it.

And nearly 40 percent of applicants said they would not take the job at all if the schedule fluctuated at the employer’s discretion, regardless of what it paid.

Interestingly, most workers would not pay much for flexible scheduling as such. The aversion is specifically to employer control over an unpredictable schedule, and to evening and weekend work.

Women, particularly those with young children, had the strongest aversion of all. Published in the American Economic Review, 2017.

Twenty percent of wages. Put that next to whatever pay gap you think is costing you people, and it is probably the larger number.

And the second finding is the one I would take into a board meeting. Nearly four in ten would not take the role at any price if the employer controlled the schedule unpredictably. That is not a compensation problem you can solve with a market adjustment. Those people are simply not available to you until the schedule changes.

Why this should be encouraging

Here is the part I want leaders to actually hear, because it usually gets missed under the gloom.

Schedule predictability is largely free.

It is difficult, it requires planning, and it will annoy some managers who like the flexibility of deciding late. But it does not require a budget approval, a board vote, or a rate increase you cannot fund.

Publishing the rota further ahead costs nothing. Protecting requested days off costs nothing. Not calling somebody on their day off costs nothing except the convenience of the person who was about to call.

You are being beaten on money by organisations with more of it. You are being beaten on schedule by organisations that simply decided to plan better, and that is a fight you can enter tomorrow.

The company that proves the point

Costco is the example I keep coming back to, because it is not a story about generosity.

They do not offer the kind of perks the big tech employers do. No campuses, no famous benefits packages. And yet people stay there for decades, with turnover running at less than a third of the retail average.

The difference is not what they hand out. It is that people are treated well, developed, and can see a future there.

Paychecks do not create pride and perks do not create purpose. Both are table stakes, and neither is what people are actually weighing when they decide whether to stay another year.

Compete where you are actually strong

Every organisation I work with that cannot win on pay has advantages it has never once articulated to a candidate.

Smaller places have shorter distances to leadership. In a rural facility somebody can walk into the CEO’s office. In a large system that person is a name on an org chart four levels up. That is worth something to a lot of people, and nobody ever mentions it.

Smaller places have variety. A nurse in a critical access hospital does things that a specialist in a large system will never touch. For some clinicians that is the entire appeal of the job.

And smaller places have proximity to the outcome. You see the patient again in the supermarket. You know the family. For the right person that is not a small thing, it is the whole reason to do this work in a small town rather than a city.

None of that appears in your job posting, which currently leads with competitive pay and excellent benefits, exactly like every organisation you are losing to.

You are beaten on money
by organisations with more.
You are beaten on schedule
by better planning.

Four things that help

Competing on ground you can actually hold

  1. Publish the schedule further out than you do now. Whatever your current notice period is, extend it. The research prices this at roughly a fifth of salary, which is almost certainly more than the raise you cannot afford.
  2. Treat requested days off as commitments. The occasional cancellation costs you far more than the shift it covered, because it teaches everyone that the schedule is provisional.
  3. Name your actual advantages out loud. Access to leadership, breadth of practice, knowing your patients. Write them into the posting instead of competitive pay, which nobody believes and everybody claims.
  4. Ask your last five leavers what they went to. Not why they left, which gets you a polite answer. What the new role gave them. You will hear schedule far more often than money.

What I would say if I were on your side of the table

Given what I do for a living, the honest version is this.

The clinicians I place are good people making rational decisions about their own lives. Some of them genuinely want the money and the movement, and no schedule change was going to keep them.

But a meaningful number of them left a building they liked, working with people they liked, because they could not plan their own month. They were not bought. They were worn down by not knowing which days were theirs.

That one is not inevitable, and it is not expensive. It is just hard, and it requires a leader to decide that predictability is worth the planning it costs.

You will not out-pay anyone. You can absolutely out-plan them.

Your Takeaway

You cannot win a pay war against a bigger system or a travel contract, so stop fighting there. A field experiment found the average worker would give up 20 percent of wages to avoid an employer-controlled unpredictable schedule, and nearly 40 percent would not take the job at any price. Schedule predictability is almost free. It is difficult and it requires planning, but it does not need a budget approval, and it is worth more than the raise you cannot fund.

Bring This to Your Organization

Keynotes and
workshops.

Chris runs national healthcare staffing organizations and speaks to health systems, associations, and recruitment teams on employer brand, retention, and winning the talent battle.

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Chris Sund

Chris Sund
Keynote speaker, Maxwell Leadership Certified Coach, and President and COO of Uniti Med, GQR Healthcare, and Nebula. Author of You Are Capable of More.

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