05.
The Talent Siphon

Levels and Ladders

In reality, no-one works for a single employer forever anymore. Instead of hoping your best people stay (and do not ask for consistent raises), it's important to get ahead of the narrative and define what you offer your people when they arrive with hope and energy. Ironically, the more you embrace the reality that some day they will work elsewhere (but that you're going to give them the finest preparation for the world), the longer they will want to stay with you, to repay the effort you've invested in their career (not just this job and what they're going to do for you).

The more closely you define and help develop and individual's career, the more likely you are going to have a long-term employee.

— Simple Numbers. Straight Talk, Big Profits!

By investing in people at the level they're at, you develop a team with high standards. I call this the Talent Siphon. Using four levels to label each employees role and status:

• Designer, Level One (most junior)
• Designer, Level Two
• Designer, Level Three
• Designer, Level Four (most senior)

Most small firms do not need three Level Four designers, they need a range of skill levels that siphons, or pulls, each level into the next:

• Level Ones grow to become Level Twos
• Level Twos grow to become Level Threes
• Level Threes grow to become Level Fours

By taking this approach you can set both the skills required for each level, and the accompanying salary range, based on your needs! Not the industry's needs, on yours.

What Happens When Level Fours Max Out Your Salary Range?

You have an adult conversation and remind them of what you can afford, and the numerous non-monetary advantages of working for a small firm like yours. People are going to find more money elsewhere, both because bigger businesses with equally big ambitions need Staff Designers, but because your competitors will over-pay (based on market standards) your people, risking financial peril, all because they cannot find and teach Level One prospects. They cannot develop talent, which is why it becomes your winning advantage.