Answers are from the Profit Planners panel: David Erickson, farmer, Altona, Ill.; Mark Evans, Purdue Extension educator, Elkhart County, Ind.; Jim Luzar, landowner and Purdue Extension educator, Clay and Owen counties, Ind.; and Steve Myers, farm manager with Busey Ag Resources, LeRoy, Ill.

One full-time employee has been with us over 20 years, and the other came two years ago. Both are competent, hardworking employees. My problem is that the younger one found out how much the longtime employee makes and wants to be paid the same amount, plus have all the same benefits as the older employee. No. 1, I believe in rewarding loyalty and hard work. No. 2, I simply could not afford it. How do I convince him to wait his turn?

Erickson: Have a clear and confidential conversation, individually, with both employees. Basic benefits should be comparable with both employees, but salary/compensation should be based on job responsibilities, experience, performance and years of service. These are basic to any job position grading process and would be helpful to you and your employees.

Evans: Explain what you have stated in the question to the younger employee. That is the first step. If that doesn’t work, you likely must let him make his decision and live with it. You should not give in, or else you could lose your seasoned employee or at least lose his heart and commitment. You would still likely lose the younger employee. Statistics show that most young people do not stay in a position long term. Therefore, you cannot probably do anything that would keep your younger employee.

Related:Consider adding these boots to your Christmas list

Luzar: “Fair doesn’t necessarily mean equal” is a statement implying that not every situation dictates each party should be treated the same. Treating both employees the same is not rewarding the tenured employee for longevity. Pay raises should possess relevance to merit.

Society has become less tolerant of financial gains not accruing equally across the board. A loyal, productive employee is helping the business make money. Equal pay increases do not have anything to do with merit!

You must ascertain what your employees feel is important to their compensation package. Discussing what they find most beneficial may provide feedback as to what most motivates them.

Employee retention is a constant challenge, and you must keep communication open with your newer employee. If they are a good worker, they may be courted by other employers. Money is not everything, but often it is everything. Gaining an understanding of your newer employee’s expectations and goals will help you adjust their compensation in coming years.

Related:Don’t let data scare you

Today’s job market is different than when your other employee started. The Extension has resources available to help make you the employer of choice. If this is not something you enjoy dealing with, find assistance for human resource issues.

Myers: It appears you have answered your own question. It will be unlikely that you can convince this person otherwise once the information is out there. Everyone has choices — sometimes tough — to make. Simply lay your cards on the table. Tell them you value them and that their time will come with commitment and seasoning, but you are simply unable to do otherwise at this time.