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  Regulate Gaps
  in Compensation

There's nothing wrong with negotiating salaries with your new hires, but keep the bands narrow or you'll wind up with a widely disparate wage structure.

Take a close look at your company's payroll. Does one gender or ethnic group typically start out at salaries that are well above the norm for other new employees?

Talent, skill, experience and education certainly can account for differences in pay. But if one group simply negotiates more aggressively than another, you might have trouble explaining salary discrepancies to other employees - or to Uncle Sam.

Keep in mind that starting salaries have long-term effects. After all, raises are often based on a percentage of current pay. So, as time goes on, inequitable starting salaries can result in wider discrepancies. And your entire pay structure becomes more difficult to explain.

When a particular job needs to be filled ASAP, it might be tempting to offer anything that gets a warm body on board. But if you're not careful, you'll end up with a divided and disgruntled staff.

Holding the Wage Reins Tight

  • Review your starting salaries and try to keep the ranges fairly narrow.
  •  
  • Develop "hiring managers" who specialize in negotiating with applicants.
  • Periodically adjust staff salaries to appropriate market levels.
  • Tell staff members that you're trying to resolve any salary discrepancies. It helps keep your team loyal and united.


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