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When you’re taking on employees to undertake your jobs, there’s a lot of work to be done. To start, you have to find and interview potential candidates, choosing the best out of the bunch you receive. Then, you have to jump through legal hoops until you’ve finished the process of employing them. All the while, professionals will be required to carry out work for you. With all of this work, it can be hard to focus on the little things which have a big impact. The amount you pay your employees is one of these areas. To help you with this tricky decision, this post will be going through some of the things you should consider.
Before you can start to figure out the amount of each employee’s payslip, you have to understand why it’s important that you get this number right. People will only be happy to work for you if you pay them fairly. It’s easy to find out how much a role will pay on average, giving your employees access to information which could hurt their relationship with you. Along with this, it wouldn’t be fair for your employees to be paid far more than others doing similar roles. The balance you seek here will shape the way your staff feel about your business.
How much should you pay?
It isn’t easy to decide how much you should pay each staff member in your business. There are a lot of aspects you need to consider, and some which should be completely ignored. Below, you’ll find a group of the most important things you need to think about. With these in mind, it should be much easier to decide how much your employees should earn.
Things to consider:
When people have a lot of experience or qualifications in a role, it makes sense that they should be paid more than someone without these qualities. After working or studying for many years, the quality of their work will be far greater than others. This will improve the results your business is able to produce. And, of course, it will also work as an incentive for people with good resumes to apply for the job.
As people get older, their needs tend to change. In most countries, the Government recognizes this, putting different minimum wage brackets in place for varying age groups. Of course, if your role isn’t entry-level, this may not apply to you. But, for people recruiting for retail or food businesses, keeping this in mind could save you money while also paying fairly. Once people have left these brackets, you should ignore age entirely. There’s no reason to pay a thirty-year old more than a fifty-year old.
The Role Itself
One of the main considerations you have to make when choosing how much you pay is the role itself. It’s easy to find resources which give you an idea of how much different jobs pay. With this in mind, you can base wages on the amount other companies pay. Generally, more skilled roles will pay more, while entry-level ones will pay less. If you pay less than other companies for the same job, your employees won’t want to work for you, and it could be hard to find new workers.
The Position Of Your Company
This last consideration is one that you take more for your company than the people working for it. There’s no point in running yourself into the ground trying to pay your employees. Instead, you have to consider what you can afford to pay. If it turns out that employees can’t be paid fairly while the business still makes money, you have a couple of options. Some employees will be happy to work for less with the promise that they will be rewarded in the future when the company grows. But, in some cases, you may just have to hire fewer people.
Deciding how much to pay your employees will still be hard, even with all of this in mind. Along with this decision, you also have to choose the other rewards and benefits your employees will receive when working for you. To help you with this task, a company like Portfolio HR can you can find a professional reward analyst to make these decisions for you. This takes all of the work out of your hands, ensuring your employees are paid completely fairly.
Hopefully, this post will inspire you to start working harder on the pay you give your workers. A lot of businesses don’t think about this area. Pay will stay the same for many years, making employees feel like they’ve been forgotten. Unfortunately, though, money is a dynamic thing. It changes too much for this area to be ignored.