Posted on February 26, 2025

Every company wants a high-performing team—the kind of people who bring fresh ideas, go the extra mile, and drive real results. But there’s a catch: many businesses also want to pay nothing more than the market average. That’s where the paradox lies. Can you really expect top-tier talent and effort while offering just an okay paycheck?

What Makes a High-Performance Team?

A high-performance team isn’t just a group of people who do their jobs well. These teams are packed with problem-solvers, creative thinkers, and self-motivated go-getters who don’t just meet expectations—they exceed them. They push boundaries, find better ways to do things, and work seamlessly together to make things happen.

But here’s the reality: top performers know they’re valuable. They have options. If one company isn’t offering them what they feel they deserve—whether that’s salary, perks, or a great work environment—they’ll find a place that does.

The Problem With Paying Market Average

Let’s be honest—when you pay market-average salaries, you’re typically attracting market-average talent. That’s not to say these employees won’t do a decent job, but they may not have the drive, creativity, or leadership you’re hoping for.

Here’s what can go wrong:

1. You’ll Struggle to Attract Top Talent – High performers have choices, and they’ll likely go where they feel most valued—whether that’s in salary, career growth, or company culture.
2. You Risk High Turnover – If you do manage to hire strong employees at average pay, they might not stick around long. Once they realize their contributions outweigh their compensation, they’ll look elsewhere. Constant turnover isn’t just frustrating—it’s expensive.
3. You Could Create a Culture of “Good Enough” – People tend to match the level of effort they feel is expected and rewarded. If employees see that excellence isn’t truly recognized (or rewarded), they may start doing just enough to get by.

Pay for the Talent You Want

The simple truth is that top talent costs money. If you want employees who think strategically, solve big problems, and push your business forward, you need to compensate them accordingly. Paying for top performers isn’t just an expense—it’s an investment with a strong return.

Companies that prioritize competitive salaries attract better candidates, keep them longer, and ultimately see stronger business results. Think of it this way: would you rather pay a little more for someone who can drive 2–3x the impact, or save on payroll and settle for mediocre results? Underpaying often leads to turnover, inefficiency, and missed opportunities—all of which cost far more in the long run.

At the end of the day, you get what you pay for. If you want a high-performance team, you need to recognize their worth and pay accordingly. Otherwise, you’re just hoping for exceptional results while offering nothing exceptional in return.