Comp bands fix this without requiring a compensation consultant or a six-figure benchmarking subscription. Here's a structure that works at the size most companies actually are when they first need it.
Why ad hoc offers break down around 10 to 35 people
Below about ten people, everyone knows what everyone else makes anyway, informally, and ad hoc negotiation doesn't create much damage. Past that point, information stops flowing freely, offers start varying by how good a candidate was at negotiating rather than the actual value of the role, and the company has no answer when someone asks "why does she make more than me for the same job."
The three-band structure
For a team this size, three bands per level is enough. More granularity than that usually isn't worth the administrative overhead yet.
- Band 1 (entry for the level). The rate for someone who meets the bar for the role but is still growing into it. This is your floor, not a starting-negotiation number you expect to go lower than.
- Band 2 (fully ramped). The rate for someone performing at the level consistently. This is where most people in the role should land within twelve to eighteen months.
- Band 3 (top of band). The rate for someone operating at the edge of the level, often someone who's close to promotion-ready but hasn't moved up yet. This is a ceiling, not an unlimited negotiation target. If someone is consistently worth more than Band 3, that's a signal to promote them to the next level rather than keep stretching the band.
How to set the numbers
List every distinct role and level you currently have, not job titles, actual levels of scope and responsibility. Two people with different titles doing the same job belong in the same band.
Pull 2 to 3 reference points per role from whatever market data you can access (a compensation survey if you have one, levels.fyi-style public data for comparable roles, or your own recent hiring experience if you've made several hires in the role recently).
Set Band 2 first, at the market rate for someone fully ramped. Band 1 sits roughly 10 to 15 percent below it, Band 3 sits roughly 10 to 15 percent above it.
These figures are estimates for planning purposes and are not tax, accounting or legal advice. Confirm the numbers for your own situation with your accountant or counsel.
Map every current employee onto the band they actually fall in. This step surfaces your existing gaps immediately, expect at least one uncomfortable conversation here.
Decide your policy for the gaps you just found. Fix the clearest underpaid cases on a defined timeline (a specific raise date, not "eventually"). Don't cut anyone's pay to fit a band; that's a retention and trust problem bigger than the one you're solving.
What this doesn't require
It doesn't require a formal leveling framework with a dozen named levels; that's over-engineering for a team this size. It doesn't require disclosing exact bands company-wide on day one, though moving toward transparency over time is worth planning for. It does require that every new offer going forward gets checked against the band before it's made, not after.