Establish a "pay philosophy" and clearly
communicate it to both employees and prospective employees.
The philosophy should state whether your
organization pays at, above, or below the prevailing wage level. If you pay
below, you should identify the other types of rewards or benefits you DO
provide such as scheduling flexibility, stock options, better work life
balance, superior training, or the opportunity to contribute to a worthwhile
Develop improved methods for linking pay to
This is especially important for organizations
that cannot pay at a high level. If employees feel their specific contributions
are recognized, they will focus less on their actual pay level.