I’ve lost good employees before simply because the salary system lacked clarity. Hard workers earned the same as average ones, so they got frustrated and left. After separating capability pay, position pay, and performance pay, everything became much more balanced. Top performers felt valued, and low performers understood they needed to improve.
Honestly, I didn’t even know how to defend my decisions. Once everything was converted into measurable indicators and result-based bonuses, I didn’t need to explain much — the numbers spoke for themselves.