Set a fair compensation

Setting fair compensation involves more than just following market trends. It starts with understanding typical salaries but should go beyond to meet your company's future goals.

Here's how to navigate the complexities of setting the right compensation:

• Market understanding: Begin with a general idea of salaries for similar roles, but remember, these figures just provide a starting point.
• Focus on value: Determine what you can afford versus the value expected from the role. It's crucial to align pay with the performance and future direction of your business.
• Internal equity and competitiveness: If a role is unique and crucial, consider going above standard pay ranges to retain top talent.
• Strategically invest in key roles: Not every position can be top-paid, but prioritize roles that significantly impact performance. Investing in top talent for these critical jobs can bring outsized benefits, echoing the 80/20 rule seen in sales teams.