What HR Can Learn From the Derek Jeter/Yankees Negotiations

Being played out in the New York media is a very public contract dispute between an employee and an employer. This isn't strange--especially not for sports--where the New York Jets' Darrelle Revis (who already had a contract, mind you) had a long contract dispute before it was finally settled in equally public fashion. But there have been few contract negotiations quite like this one--a legend who embodies an organization fighting on the back pages with a legendary organization that demands professionalism and results from its employees. In the end, the Yankees need Jeter and Jeter needs the Yankees...but in the meantime, they're left to squabble it out to sports writers.

HardballTalk

But that doesn't mean that similar things don't go on in your own company. How many employees do you currently manage who are unhappy with their salaries but their loss would sting your company more than the financial outlay? How many employers have employees that they can probably do without but have meant so much to an organization that added financial incentive to stay around (and maybe as a reward for past results) may be appropriate? How many times does this situation become contentious and lead to a standstill between the perceived value of the employee and the offering value of the company?

The problem is that it doesn't look good from either side, but the employer has to figure a way to solve it before the problem spreads to other employees. Can you imagine if all the Yankees free agents were involved in this much of a public spectacle over the contract negotiations? If the Yankees were actually playing right now (and corporate America rarely has an off-season like baseball does) imagine the distraction this would cause--is the proposed cost savings worth it? The lesson here is not to pay employees just because they become disgruntled or to reward bad behavior, but sometimes a little extra pay (or other types of incentives) goes a long way to making sure a dispute does not get out of hand. As many people would find it weird to see Derek Jeter in anything other than Pinstripes, so you should find it weird to imagine your best employees working for one of your competitors.

What I’m Hearing…Rookie Police Officer Salaries

Here in New York, one of the big news items this morning is the increase to rookie police officers’ starting salaries to $35,881. In 2005, a new contact cut rookie starting salaries to $25,100. The nearly 40% increase in pay should help to address the serious recruitment issues the NYPD faces. Among other negotiated terms in exchange for the higher pay, the number of vacation days for new hires will drop from 20 per year to 10.

Recently, the City of Seattle posted billboards luring officers to relocate across the country for higher wages. The starting officer salary in the Emerald City is $47,334. The Seattle Police Department will also put in an additional $5,000 for relocation costs.

Supply and demand for labor knows no geographic boundaries. Certainly, one must give credit to Seattle for their creative recruitment techniques. However, it is good to see that New York stepped up to the plate to make these adjustments in officers’ salaries. $36,000 a year is a small salary for those who risk their lives every day to make sure we can safely enjoy ours. Hopefully this increase is a step in the right direction for attracting new talent to the field of law enforcement, and retaining the current police force.

In other news, Clearview Cinemas on Manhattan’s Upper East Side announced that child and senior movie tickets would be the same price as an adult – $12.00 – even during matinees. One wonders how far that 40% pay increase will go.