Salary reviews are one of those areas where intentions are rarely the problem. Most employers want to be fair and competitive. Yet dissatisfaction with compensation remains one of the most common reasons employees leave.
In my experience, it's rarely because salaries are too low in absolute terms. It's about how the process is perceived – and how decisions are communicated.
Mistake 1: Salaries are set without clear criteria
When employees don't understand what influences their salary – which performances, which behaviors, which factors – they interpret the silence negatively. They assume decisions are arbitrary, based on relationships, or dependent on who negotiates best.
Clear salary criteria, communicated openly, create expectations that can be managed. That doesn't mean everyone should earn the same – it means everyone should understand why differences exist.
Mistake 2: The salary review lacks follow-through
A salary review that ends with a decision and no context is a missed opportunity. What does the person need to do to take the next step? What's a realistic timeframe? What's being measured?
When those questions go unanswered, the employee leaves the conversation with uncertainty – and at worst, with the feeling that it doesn't matter how well they perform.
Mistake 3: Internal salary structures don't reflect the market
It's natural for internal salaries to be adjusted less frequently than the market moves. But when the gap becomes too wide, employees start looking externally – not always to leave, but to confirm their own value. And by then, it's often too late to act.
A market comparison doesn't have to be complicated. But it needs to happen.
If you have thoughts, questions, or simply want to talk something through — feel free to get in touch. I am happy to have an initial conversation with no agenda.
Right person. Right place. Everything changes.