Organizations that use “stay bonuses” as a retention tool could be making a huge mistake. Instead of letting poor performers go, they pay tons of money to keep them.

It’s been a rough year in the market. Let’s hit rewind and explore some underlying axioms about business. Sure, many of these are clichés (probably because so many folks have abused and perverted them that they often ring hollow), but they’ll set a context to explore this issue.

1. People are our most important resource.
2. It costs much more to hire someone new than it does to keep the associates you already have.
3. People are always searching for growth opportunities.

Here’s the issue: Those three axioms set many organizations up for a colossal form of organizational stupidity.

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