Most small businesses lose good employees not because they underpay — but because they handle salary reviews badly.

After years in Total Rewards and Compensation, here are the three mistakes I see over and over:

1. "We'll figure it out when someone asks for a raise"

By then it's too late. The employee already has another offer. A structured annual review cycle — even a simple one — keeps you ahead of the problem.

2. Not starting early enough on some kind of structure

"I think $65K is fair" isn't a compensation strategy. You need some kind of salary ranges. If you do not have access to market data (benchmarking), just try to setup salary ranges based on your grading and data. It will soon make sence.

3. No documentation trail

If you can't show why someone makes what they make, you're exposed. Pay equity isn't just an ethical issue — it's a legal one. Small businesses think they're too small to worry about it. They're wrong.

The good news? Fixing all three is simpler than you think. A single well-built spreadsheet can handle benchmarking, merit calculations, and documentation for a team of 5 or 50.

That's exactly what I built with the Salary Review Toolkit — but even if you build your own, start with some of these three fundamentals.

More toolkits to come soon!