Employee compensation debate: Internal equity vs. market rate

Posted by Bob Corlett on April 2, 2012

Does this sound familiar? ”I can’t pay our new manager $110k because the other manager in that department only earns $95k.” Hiring managers often hamstring themselves over this kind of “internal equity” consideration. I've written previously about the dangers of hiring to fit the budget, instead of hiring someone with the skills to actually do the job. This “internal equity” consideration is exactly the same kind of problem.

To hire great people, only “market rate” matters.

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Topics: Hiring Managers, Recruiting On Your Own