Coping With the Talent Crunch

Training employees ensures future loyalty, If economic incentives are your only tool for coping with the talent crunch, you may win the battle (putting bodies in the cubicles), but lose the war (creating long-term competitive advantage).
This scene tells the story:
The leadership team of a $100 million manufacturing company is sitting around the conference table rejoicing in their increased sales, but concerned about turnover, inability to attract competent new hires and no heirs apparent for their positions. They consider adding benefit incentives that reward longevity, thus creating "golden handcuffs."
Most businesses are struggling with the need for talent. Whether the arena is fast food, technology start-up, big-time consulting or mature manufacturing, the challenge is great From where is the talent going to come to navigate the bumps on today's business racetrack?
Faced with the problem, many employers have demonstrated great creativity in designing ads, tailoring benefit packages, flexible work hours, signing and recruiting bonuses, etc. An argument could be made that those unique salaries and benefits create "golden handcuffs," keeping people in place who don't want to be there. They may cause employers to attract and retain the "wrong" people for their business.
Those "wrong" people may stay despite the fact that they don't fit with the business and jobs, simply because the compensation is good. At best, these attractions are necessary to compete, but only keep you even with the competition.