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Pay positioning defines where a company wants to pay relative to the market.

While the sample sizes are relatively small, we find that pay raises for those with a higher performance rating (”exceeding expectations”) were greater than those who merely “met” performance expectations.

WAR measures a player's value relative to a hypothetical replacement-level player, defined as someone readily available from the minor leagues or free agency and paid near the league minimum salary ( Major League Baseball 2025).

The second big “watch out” is forgetting about fairness and relativity across the organization.

“In 2025, the primary driver of improved funded statuses has been strong market returns, with interest rates remaining relatively stable and having minimal impact on pension liabilities,” said Jonathan Sterbanz, WTW’s senior director of retirement.

Few organizations have achieved their aspirations in terms of their position relative to market or their internal consistency on the appropriate pay for each employee’s role and contribution.

The current LSA landscape is like the “Wild West,” said Domaszewicz since more employers are exploring this relatively new benefit.

A quick fix for this problem is spot checking the market competitiveness of the salary and total target compensation for sales roles relative to your peer group.

“The best employers step back to explain what previously happened only behind the curtain, including how the company positions employee pay relative to the market, how pay ranges are developed, or how decisions about individual pay are made,” Vallas said.

As employees — whether they are gig workers, part-time or full-time — gain access to more information about a company’s pay ranges and levels plus where their individual pay fits relative to those, employers will need to ensure that they have a coherent message to all of these employee segments, Frost said.