I&#x27;m arguing that talented people move to greener pastures when they feel that they are undervalued or not treated equally.  If for every overachiever you have x number of people who go &quot;well I&#x27;m going to get paid the same as long as I put in my 40&quot;, you will no longer have a successful company.  If you doubt the existence of this, you will have proven that you have never worked for the government.<p>&gt; A better approach is offer the over-achievers a promotion. New position, new responsibilities perhaps, and a new salary. Attainable equally by anyone else who wants it.<p>I don&#x27;t see how this is any different from offering pay raises.  What if there is no room for advancement in the company?  How do you measure whether people qualify for this?  You can always offer more pay, you aren&#x27;t necessarily able to create new job responsibilities and titles out of thing air.