one more thing. If I'm generous I'll pay everyone 10% more than they're worth. How do I do that?? I have to know what they're worth first.
someone else in this thread said: "It's a productivity killer. If everyone knows that John is a better developer than Bill, but Bill gets paid twice as much because he understands corporate politics, then people focus on politics, feel like life is unfair, etc. The money saved by underpaying your best employees is rarely worth the inevitable productivity hit and loss of talent."
If everyone knows that Bill and John each get 10% more here than anywhere else, then I am a generous and fair employer.
If Bill and John respectively get -20% and -40% here as compared with what they would get elsewhere, then I am both non-generous and unfair. If they both get -10% as compared with anywhere else, then I am not generous, but at least fair.
And if they get +20% and +35% as compared with what they would get elsewhere, then I am generous but unfair.
someone else in this thread said: "It's a productivity killer. If everyone knows that John is a better developer than Bill, but Bill gets paid twice as much because he understands corporate politics, then people focus on politics, feel like life is unfair, etc. The money saved by underpaying your best employees is rarely worth the inevitable productivity hit and loss of talent."
If everyone knows that Bill and John each get 10% more here than anywhere else, then I am a generous and fair employer.
If Bill and John respectively get -20% and -40% here as compared with what they would get elsewhere, then I am both non-generous and unfair. If they both get -10% as compared with anywhere else, then I am not generous, but at least fair.
And if they get +20% and +35% as compared with what they would get elsewhere, then I am generous but unfair.