Let’s get one thing straight — you’re paying for the job, not the person.
If you’ve ever caught yourself thinking, “They’re not really worth that much,” it’s time for a rethink. Because if someone isn’t worth the going rate for the role, then they probably shouldn’t be in the role. Simple as that.
Every job has a value in the market — a range that reflects supply and demand, skill level, and responsibility. That range has a top and a bottom, and your decision on where an employee sits within it should be guided by capability, experience, and the value they bring to your business and culture.
If someone comes from a more senior role and decides to take a step back, you don’t pay them beyond the range just because of where they’ve been. They’ve applied for this job, and this job pays within this band.
Why pay equity matters
Pay equity isn’t about everyone earning the same — it’s about being able to explain why people are paid what they’re paid. When pay decisions are grounded in a structure that’s consistent and transparent, it builds trust and fairness.
But if those decisions are based on gut feel, emotion, or “what someone negotiated,” you’ll quickly find yourself in murky territory.
Because here’s the thing — people talk.
They’ll compare notes.
And when they do, they’ll make assumptions about fairness, leadership, and who’s valued more. Those assumptions become resentment, and resentment erodes culture faster than you can schedule your next pay review.
Systems before salaries
You can’t make fair pay decisions without structure. That means job descriptions that define expectations and outcomes, a framework that outlines your pay bands, and a process to link performance and growth to measurable outcomes — not who speaks loudest or stays latest.
Your pay system should be researched and driven by the market, not by asking your mates what they pay.
Use remuneration reports, market data, and even anecdotal evidence to build a realistic picture of what fair looks like for your industry and location. The goal is consistency — a framework that holds up under scrutiny and supports both equity and business sustainability.
Without it, every pay review feels like a minefield. You’ll find yourself overpaying to keep people, underpaying the quiet achievers, and explaining decisions that don’t stack up.
A word on performance-based increases
Performance-based pay can be great — if you can back it up. You need clear, objective evidence of what great performance looks like and how it’s measured. Otherwise, you’re just handing out random pay bumps and calling it merit.
The takeaway
When you set pay, you’re setting the tone for how you value work in your business.
Be clear. Be consistent. Be fair.
Because without structure, pay isn’t just a number — it’s a breeding ground for confusion, comparison, and conflict.
How we can help
At The People & Culture Office, we help businesses build the structure behind the decisions — clear job frameworks, pay bands grounded in market data, and performance systems that make pay fair, not fuzzy.
Because when your pay strategy aligns with your culture and business goals, you’re not just paying people — you’re rewarding performance, attracting talent, and building trust.
Ready to stop guessing and start getting it right?
Book a discovery call and let’s make your pay system work for you.
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