It is the moment every founder worries about. Your key player puts in their notice: "I’ve been offered a role at a competitor for 20% more." The instinct is to panic. You immediately think: "I have to match it. I can't afford to lose them right now." Here is the paradox: If you convince them to stay solely by matching the money, you haven't really kept them. You’ve just delayed them for another six months. Why? Because rarely does someone leave a job they love just for money.

Most founders I meet are guessing at their compensation strategy. Here is a 5-Point "Comp Health Check" you can use to stop the guessing game. 1. Philosophy : Do you have a written statement defining how you pay relative to the market? Warning Sign: "We pay what it takes to get them." Healthy Sign: "We target the 75th percentile for engineering and 50th for admin." (For example). 2. Data : When was the last time you benchmarked your roles against real market data? Warning