As in almost all companies salaries of Zemanta employees are a business secret and we expect our employees not to discuss them in public. Nonetheless we act as they would be public, since usually people know at least approximately how much their coworkers earn and there are very few bigger detriments to morale in a company than perception of unjust salaries. Consequently, the salaries of employees are actually not defined by management alone but are a collective perception of one's worth. Managing salary expectations of existing employees is not so difficult. If performance of an employee is adequate a salary hike must follow or the employee will eventually leave. On the other hand, if the performance is sub par, request for salary increase is a great opportunity for a discussion about difference in expectations and perceptions between the employee requesting a hike and the management rejecting it. In large majority of cases (>95%) also salary expectations of new hires are quite realistic. But when a potential hire expects an excessive salary, we don't follow with an offer since it is more important to retain existing employees happy than always win a hiring competition.