Fair Pay in a Noisy Market: A Practical Guide for SMBs

Scott Michajluk
Sep 1
2 min read

August 29, 2025

By Scott Michajluk | Fractional COO | Founder, GO Consulting

When the economy wobbles and the job market sends mixed signals, compensation decisions get complicated. Budgets are tighter, expectations are higher, and your team is paying close attention to what “fair” looks like. In this environment, copying a salary number from a website won’t cut it. You need a simple way to anchor pay in reality without turning your process into a 20-tab spreadsheet.

Below is a high-level framework you can apply across roles and company sizes. The below framework is clear enough to act on, light enough to run, and flexible enough to evolve as your business changes.

The Fair Pay Triangle

Fair compensation = Market Rate + Role ROI + Person EVQ

Market Rate: What similar roles are paid in your geography and industry.
Role ROI: How the role drives revenue, margin, or risk reduction in your specific model.
Person EVQ (Employee Value Quotient): How the individual shows up day to day: accountability, autonomy, reliability, and cultural impact.

Treat each leg of the triangle as a separate check. You are cross-checking three truths, not searching for one magic number.

What To Confirm Before You Name a Number

Market sanity check: A current range from multiple sources that match level and scope.
Business outcomes: A short statement of the 2–3 results this role should move (no need for a full model, just clear ownership).
EVQ read: A concise assessment of how the person works, not just what they do.
Turnover risk: A sober look at the cost and disruption of losing a high-accountability player.
Total rewards mix: Base, a simple variable tied to owned outcomes, and benefits that fit company size.
Communication plan: Why this number, how growth is rewarded, and when the next review happens.

Principles That Keep You Out of Trouble

Pay for outcomes, not noise. Reward durable improvements, not constant firefighting.
Be consistent. If two roles create similar value, treat them similarly.
Keep it simple. A plan managers can’t explain becomes a plan employees don’t trust.
Review on cadence. Revisit ranges when scope changes or annually; don’t wait for frustration to build.
Show your work. Clarity is part of compensation. People respect a fair system, even if they want more.

Signs Your Compensation Is Working

Candidates understand the role and how they can win.
Managers can explain pay decisions in a few sentences.
Finance sees predictability, not surprise drift.
Retention is strong where accountability is high.
Raises and bonuses track real business movement.

Common Traps to Avoid

Paying for personality instead of outcomes.
Using a single salary source and calling it “market.”
Rewarding constant firefighting while ignoring process fixes.
Confusing tenure with contribution.
Hiding the rules. If people cannot see the system, they will invent one.

If You Want Help

We run a focused Compensation Calibration for SMB leadership teams. In one working session we align market ranges, clarify role outcomes, introduce a practical EVQ lens, and shape a simple variable plan your managers can actually run. If you want a clear, defensible structure without turning your week upside down, let’s talk. Schedule a session