Most organizations pay their employees based on tradition; not statistics. Everyone now measures himself against the salary increase of that one individual five years ago.

To build a rational structure, a seasoned HR consulting services company studies wages, job requirements, market information, and so on, and determines if there are disparities in wages within the organization.

A mid-sized logistics company in Texas has an annual turnover rate of 34%. A hiring firm used to determine their median pay was a diva in the area when recruiting their warehouse leaders that that was the median pay they would have to give them. In the first year after a new pay band was introduced, The One's turnover rate went down to 11%.