Saving pennies should never justify forgoing dollars of income.
The most successful business people I know never consider cost, and only consider ROI, particularly when hiring people and engaging services.
There is no path to excellence through paying market price. A consistent ROI focus results in rapid growth and success.
A vice president at a client company of mine was considering candidates for a senior sales leadership role. The candidate she wanted achieved extraordinary results in his last company and was looking for the right opportunity to go to the next level of success.
He outshone all other candidates in her view. His salary requirement was high, but certainly the company could afford it, and easily worth it for the kind of results he would have been expected to achieve, which were aggressive and ambitious. She chose him.
However, HR intervened and nixed her choice, saying that his salary requirement was “well above market price.” In attempting to renegotiate, the candidate walked away. He was confident that another company would recognize his value and meet his requirement. The second choice candidate whose salary was within industry average norms accepted the offer of employment.
Like his salary requirement, his business results were also average, within industry norms.
HR considered this a victory. The vice president did not.
People are not commodities.