The Hidden Costs of Hiring Mercenaries

May 12

Why Mission-Driven Teams Outperform Money-Motivated Talent

TL;DR - The best people don't do it for the money. Money is nice, but the best engineers, marketers, managers, etc. are motivated by something beyond compensation. And Beware: just one self-interested mercenary can harm your culture if you're not careful.

In a recent conversation with a founder client, he described a conflict he was having with a new high-value hire. The new engineer was very good at what she did and had the potential to add tremendous value to the company, and she knew it. She was given a very generous total comp package (95th percentile), and within a month of coming on board, she was put in charge of building a new model that could double growth for the company over the next year.

But after just two months, she wanted to renegotiate her package. She wanted to accelerate her equity vesting before she pushed the new model and sought another 0.5% of equity in the company. Although she didn't say it outright, she was essentially holding the company hostage over compensation. While employees deserve to be compensated fairly for their contributions, a team member's myopic and unreasonable focus on compensation tells me something else: He hired a mercenary.

In war, mercenaries are highly skilled soldiers who go to battle for a paycheck, not for love of god or country as missionaries do. In business, mercenaries are highly skilled workers who have no interest in the company outside of enriching themselves, and they should be avoided at all costs. Sometimes, you may not have a choice but to hire a mercenary. They can be very helpful for short-duration assignments or highly specialized tasks. But as a core member of your team, they will only rot your company culture from the inside out.

The Research Is Clear: Missionaries Drive Performance

The data supporting the missionary advantage isn't just anecdotal.

According to Gallup research, companies with high employee engagement (a hallmark of missionary-driven cultures) experience 21% higher profitability and 51% lower turnover rates. When people believe in what they're doing, they stick around and deliver results.

Deloitte found that purpose-driven companies enjoy 40% higher levels of workforce retention than their counterparts. The math is simple: replacing employees costs roughly 33% of their annual salary when you factor in recruitment, training, and lost productivity. That mercenary who walks out the door for a better offer doesn't just take their talent—they take a significant chunk of your capital with them.

Perhaps most striking, a study by Corporate Board/EY revealed that companies committed to purpose outperform the stock market by a staggering 42%. The financial case for cultivating missionaries rather than hiring mercenaries couldn't be clearer.

You may have more mercenaries than missionaries if…

Retention Problems - High turnover during challenging times is the most reliable indicator that your company has more mercenaries than missionaries. When the going gets tough, mercenaries start updating their resumes while missionaries dig in deeper. You'll notice increased discussion about compensation rather than impact, with team members regularly comparing their packages to market rates or competitors' offerings.

Transactional Approach to the Work - Mercenaries are clock-watchers, approaching their work as a transaction rather than a mission. They're often first out the door at 5:00 PM sharp, regardless of critical deadlines. Their communication typically centers on "what's in it for me" rather than "how can we achieve our goals together."

Less Collaboration - Another telltale sign is diminished collaboration across teams. Mercenaries prioritize their own departmental or individual metrics above company-wide objectives. They're reluctant to help colleagues unless there's clear personal benefit, creating silos that damage company culture and operational effectiveness.

Screen out mercenaries in the interview process…

The interview process is your first defense against hiring mercenaries.

What do They Love Beyond the Comp? Structure your interviews to probe candidates' motivations beyond compensation. Ask pointed questions about their interest in your mission: "What excites you about the problem we're solving?" Their answers should demonstrate genuine enthusiasm rather than generic responses.

Pay Attention to Their Questions for You - Missionaries will ask about impact, culture, and growth opportunities. Mercenaries predominantly focus on compensation structure, exit timelines, and advancement policies. While everyone should discuss compensation, be wary of candidates who bring it up repeatedly or prematurely.

Test for Values Alignment - Consider implementing mission-alignment exercises during interviews. Present candidates with scenarios where company values might conflict with short-term personal gain. Their responses will reveal whether they prioritize collective success over personal achievement.

Adapt Your Reference Strategy - Reference checks should specifically investigate how the candidate handled challenging situations at previous companies. Did they remain committed when things got difficult, or did they look for the first exit opportunity? Past behavior is often the best predictor of future conduct.

If you suspect you have mercenaries in your midst...

First, is it You? Assess whether your company culture might be enabling mercenary behavior. Examine your reward structures, recognition programs, and promotion criteria. If these primarily focus on individual achievement rather than collective success and mission alignment, you may inadvertently be cultivating mercenaries.

Address it Directly - For team members exhibiting mercenary tendencies, initiate honest conversations about values alignment. Clearly articulate your company's mission and values, and discuss how their behaviors align or conflict with these principles. Sometimes, mercenaries aren't aware of how their actions impact team dynamics.

Reward Team Outcomes - Consider implementing more team-based incentives rather than solely individual performance bonuses. When compensation is tied to collective achievement, mercenaries are encouraged to think beyond personal gain.

Move On If Things Aren’t Getting Better - For entrenched mercenaries who continue to prioritize self-interest over company mission despite intervention, be prepared to make difficult decisions. While losing talent is challenging, the cultural damage from keeping mercenaries on your team often outweighs their individual contributions. Remember that one missionary can often accomplish more than three mercenaries because they inspire others and create multiplicative value through collaboration.

Elevate and Celebrate Your Missionaries

To retain and attract even more missionaries, you have to celebrate and elevate them. Make them visible role models within your organization. Share stories of team members who embody your mission and values, creating a culture where missionary behavior is the expected norm rather than the exception.

Again, this isn't just feel-good advice—it's strategic. Companies like Salesforce have achieved a 93% employee retention rate (far above the industry average of 73%) through their mission-focused culture. Their employees don't just work for a paycheck; they work for a purpose. The result? Reduced turnover costs are estimated at 30% compared to their competitors.

What About that Client…?

And if you're wondering what my founder client did about his mercenary engineer, that remains to be seen. Sometimes we only make hard decisions when the pain of not making the decision outweighs the pain of making it.

Let's hope he doesn't wait until it's too late…

What about YOU?

What's one action you can take this week to identify and elevate the missionaries in your organization? Share your thoughts in the comments or reach out directly—I'd love to hear your experiences navigating the missionary-mercenary divide.

Edward Sullivan