You can recruit people by dangling more money in front of them and they’ll come to work for you–easily in fact. But, if someone else dangles a bigger pay packet, they’ll leave just as easily.
So, while money may be a good way to attract people, it isn’t the best way to keep them. Sure, there are people for whom a job will always be about the money, for whom it’s all about the money. But do you really want those people?
Do you want them building your company, talking to your clients, building sales relationships? Are you sure they’ll be with you when the next boom happens or when a headhunter calls with a better offer?
There are many companies that throw money at people and extricate them from other companies. It happens a lot in IT companies now-a-days. Here today, gone tomorrow.
Me thinks if you use money as a primary recruiting tool, you can say the same thing about your company–here today, gone tomorrow.