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Should businesses pay people on a structured and distinct scale or allow employees to negotiate salaries?
Structured pay may mean that top performers eventually leave the company for more lucrative roles (even ones that are exactly the same as what they do but for a competitor).
Top talent will not stick around if they see no room for upgrading their salary, especially if they see other companies willing to be more open to discussions regarding salaries.
Just because structured pay is not negotiable does not mean that the salary will be low. Companies are well aware of competition therefore will offer their top performers desirable salaries.