Have you ever had a situation where you fell in love with a prospective employee who asked for more salary than you were willing to offer? Or a valued employee who tendered her resignation and you attempted a counteroffer?
Every leader has experienced this at some time. On the surface, you’re faced with offering more money than you were originally willing to pay. Both situations, though, merit more consideration than just the checkbook.
The prospective employee
If you pay more than you want to, you will tend to expect miracles from the new employee (“after all, I paid her thousands more than the position is worth…”). Consider other ways to compensate, such as bonuses or other incentives.