Turnover is expensive and disruptive. Especially for small and mid-sized companies where each person carries significant weight. But when a key team member walks away, how do you know if pay was part of the reason?
Often, compensation doesn’t top the exit interview list, but it lingers beneath the surface. Subtle imbalances can erode loyalty over time, especially when employees start comparing notes or offers.
For many business owners and HR leaders, salary increases feel more like guesswork than strategy, especially when inflation, shifting labor markets, and rising employee expectations all collide. Should you apply across-the-board raises? Prioritize performance? Adjust for inflation? And how do you balance fairness with financial discipline? The answer isn’t a formula. It’s a mindset shift.
‘Are you paying competitively?’ is a question business owners often ask themselves. This article provides a framework for competitive pay.
