Pay Employees What THEY Want.

I recall hearing years ago about a small organization where the owner was tired of dealing with people complaining about their salaries, so he told everyone in the organization to set their own salaries.  He told employees that they could go into payroll and set their salary at the level they feel they are worth.  Here's what happened.

• One person walked in and gave himself a small raise, just to see what would happen.  It was accepted and the new pay level showed up on his next paycheque. 
• Another took a pay cut as she just didn't want to work that hard and felt a huge stress release of not having to live up to the expectations of the higher salary.
• Finally, one person, who was not a great performer, took a significant raise.  However, once his salary was set at a level of what he thought he was worth, his level of performance improved significantly.

I think you will enjoy these thoughts in this article about setting salaries during the interview process.

http://www.inc.com/ilya-pozin/hiring-compensation-pay-employees-what-they-ask-for.html

I welcome your comments.