Money is Not a Talent Strategy. You Need a Unique Selling Propositio
I’m going to break the rules and start this article with a definition.
What is a Unique Selling Proposition?
A unique selling proposition (USP) is the unique benefit a company, service, product, or brand offers that enables it to stand out from competitors.¹
A USP applies to more than just products; it applies to attracting and retaining talent.
When organizations are hiring, they must compete with other potential employers to secure the best people. In this process, the organization and the hiring manager present themselves to the prospective employee with a suite of offerings, with salary and title being the aspects they often focus on the most. And that is a losing strategy. The winning strategy for highly compensated, high-EQ knowledge workers who can bridge the divide between AI-generated output and clients is to deliver them a unique working experience.
While this is true at any organization, it's most easily illustrated in my old stomping grounds: law firms and law firm compensation. In late 2023, Cravath (a well-known NY law firm) raised starting associate salaries, and law firms around the country were now pondering what, if anything, to do. Predictably, this move sparked a salary war, in which many major firms raised the salaries of their lockstep classes. As a result, no firm had a hiring advantage, but every firm had higher costs. And even if there was a marginally higher compensation at Cravath because another firm did not raise its compensation, is that really the path to getting the best talent? I think not.
Rather than match the next salary increase, firms could reduce costs and increase morale, productivity, retention, and revenue generation per associate with a much simpler change: offer them a USP.
The USP that really matters: People.
What kind of USP? This one: “At FIRM NAME, we offer something that you cannot find at any other top-tier firm: sincere investment in you. We mentor, grow, support, and develop you in a way that either supports your ascent to partnership at FIRM NAME or launches you into whatever career you feel is most resonant. We believe that it should be painful to leave FIRM NAME, not painful to stay. Our pay will be great, and it won't be the highest. We know your decision to join us is about more than just taking the last dollar off the table. Part of your choice is going to be centered on what is best for you and your career, and we are completely committed to that same outcome.”
And then the firm must follow through and execute on it—every day. And if this is just boilerplate language, it’s more than worthless. It's cynical and will drive people away. A people-forward USP only works if it shows up in calendars, compensation decisions, and promotions.
The simple idea of investing in people has been the intellectual underpinning of my time as a leader, and I was far from the first person to recognize this. Awesome people will always have choices on where to work. Awesome people are typically not chasing the last dollar on the table either. Nor do most employees leave for the last dollar; they leave because their managers and leaders don’t care about them as people.
What do you do? It's not complicated, and it can be hard. It involves time and energy. And remember, the only thing worse than investing in people who leave is not investing in them, and they stay. Here are four ways to start the process:
Mentorship. Real mentorship by mid-level employees who have a reputation for leadership and caring about others. Make it known that being a mentor is an honor, and it will be reflected in reviews and compensation.
Career Path Optionality. According to the Bureau of Labor Statistics, a professional services employee has a median tenure between 3.5 and 4.9 years, depending on industry.² Let employees know that your company is willing to invest in them so they stay longer and do better work, and that the charade of “making partner” is not necessary for a mutually beneficial relationship. What’s more valuable than a highly profitable associate? A highly profitable client whose loyalty is shaped by how you treated them.
Manager/Leader Accountability: Teams are never better than the quality of their leadership. Hold managers and leaders accountable for high turnover and low productivity; don’t make it part of the business model.
Coaching. Create an in-house coaching practice and have all employees attend classes and seminars that will help them grow. For the best and brightest, give them individual attention that will elevate them professionally. And don’t shove these hours in when there “is time.” Make this billable work that is protected and valued.
Every business is easy to run once you remove employees and customers from the equation. If ever there was a business that is about people, it's the practice of law. Sadly, work is often nothing more than trading time for money. When the time you trade is rewarded in benefits that enrich you both personally and professionally, you will do more, be more, and contribute more.
If you don’t know where to start, start by sitting down with your team and telling them this:
“I need you more than you need me. You are excellent at what you do, and you could easily find another place to take your talents. I am grateful to have you on my team. I am going to listen to what it is that you want out of this journey, and together we will architect something that makes working together compelling for you.”
And if that is uncomfortable to say, consider how lovely it would be to hear it from your boss.
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¹ https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
