Read a nice article and have noted some points below. These are gems of Compensation and expressed very well.
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Compensation is never going to be the thing that makes people stay at a company, nor should it be. Compensation is not a healthy version of retention.
It's better if candidates join for the people,vision, culture, and have to make a hard decision on compensation. They will stay longer.
Be fair and transparent to get compensation off the table. You can't be transparent if you are not paying fair.
Feelings about compensation are relative not absolute.So be ready to be able to explain and defend everything through a logical set of guidelines.
You can't predict people's performance and the state of the business in a year. It's a good idea to be conservative.
Don’t jump to the numbers, first explain the framework. That will start things off on the right foot.
One of the best things you can do with new hires is to offer fair and not negotiate. If you negotiate, you're primarily rewarding people who are good at negotiating.
Value people who care about the company’s burn rate and know that salaries are the biggest part of that for most companies.
Every new hire should be informed that compensation reviews only happen once a year or when moving to a higher level role, within the purview of market salary ranges. There should be no exceptions.
In addition to providing competitive salaries for the market, you should explain what that means to your employees. Don’t leave people wondering where you got your data set or how credible you’re being on this issue.
Make a huge deal out of the exception to the person in question (not to everyone else). They need to know that you broke your system for them and that it’s a very, very rare occurrence. This communicates both that they are indeed special, but also that it won’t happen again.
Always adjust to the market once a year so that you know for sure that what you’re offering is fair, and that your employees are set up for success in their lives outside the office.
Don’t make exceptions unless you absolutely have to. Exceptions create disparity.
