Hi Luigi, thank you very much for your contribution!
Completely agree with the need of a strategy regarding if you pay below, above or on the median market wages.
You’re also definitely right: benefits and package are to be considered too, as well as variable income . I chose not to include those in this post to keep it reasonably long and also because I think salary is a big deal in itself. That is, aside from benefits, if it is perceived as inadequate or inconsistent, it creates disengagement. But I totally agree that we need to consider the whole package — and make sure it is valuable to employees, as you said.
I will be happy to discuss these topics if I go for writing a second part to this post! To complement with what’s missing: variable salary, benefits, stock options…