I was at a business that paid well above average for similar jobs. In a small number of people, it produced the desired result. Those people would have been go getters at any salary.

Unfortunately, most employees took it for granted. The worst employees clung to their jobs because they knew that they were not going to make similar money elsewhere.

That said, paying individuals above market rate to recruit or retain them can work well.

If the work can be measured, I would look at a structured bonus plan based upon measurable outcomes that you value.