Certain criteria establish internal equity. Among those criteria are education, responsibility, consequence of error, and impact on mission. Comparables would include organizations similar in budget size as well as overall function. All compensation must keep within the bounds of local, state and federal law. The compensation strategy needs to take into account changing demographics and economics.
Employees talk to each other, especially in a merger situation.
This is critical, because often it is not what you make, but what you believe you make that defines your understanding of fair and equitable compensation and your level of satisfaction. In any merger situation it is important to understand the perceptions and concerns of the employees who will be affected. To insure that you get commitment from employees, make communication and addressing employee concerns a top priority. Simply paying staff the same amount post-merger, or even giving increases in pay, will not automatically solve issues of compensation dissatisfaction. Keep in mind that it is not so much what you earn, but what you think you earn and what it is that you want from your organization that is important to most people.