Salary grading and benchmarking are some of the issues faced by most of the organizations who do not pay equal salaries as per market value for the same positions. This may bring many challenges both for the company and employees. Employees may loose interest at work, get demotivated, loose their sense of innovation, avoid taking initiatives, just come to work so that he gets paid end of the month, use companies resources to find another job, and most importantly, may resign. The disadvantages which this brings to an organization are far more - the biggest being impact on profits and unhappy employees.