People appreciate when their talent is recognized.
This method helps keep them from calling headhunters or looking through want ads. Organizations that have fair compensation practices succeed in retaining talented employees. You do not have to overpay talented employees, nor do you have to make compensation the most important value of the organization. Fairness in terms of equity, based on market conditions, results in long-term retention of talent. When individuals are compensated unfairly, it is inevitable that you will lose people.