Here’s what I say whenever someone asks my advice on compensation for a new candidate or a raise for a current employee:
“Take what feels right, then raise it by 10 percent. Or, if you can figure out what the person thinks is right, raise that number 10 percent.”
In other words, pay your people more than you think they are worth.
Overcompensation in the Real World
We can find examples of successful overcompensation all over the place.
I explore this and much more about this topic in a guest post that appeared today on ExecuNet. Click here to read the article in its entirety.