How to set competitive salaries

There are many factors that determine whether or not your employees are being paid enough, and even more important that they feel like they are being paid enough.It is a good idea to make sure that you are setting competitive salaries for your employees.

Here are a few things that can be factored in to make your employees feel like they are well paid.If employees don't feel like you are paying them well, they will start looking other places.

Start by looking at the expectations you have for your employees.If they are extremely high, then the pay should be higher than for a position that doesn't require much.For example, the supervisor should make more than the other employees that they are over.If they are getting paid less then they might feel that they shouldn't have to do so much beyond what the other employees have to do.

Also look at the easily replaced the employee is.If this is a person that is very qualified and hard to find, you may have to fork over more money.If they can go somewhere else and be in demand, then there is nothing making them loyal to you.If the person is a dime-a-dozen, then you don't need to offer as much.

It is a good idea to have a set pay structure.If you are just basing pay on each individual then you are going to have problems.There are going to be people that find out how much others are getting paid to do the same job and wonder why they are being cheated.Each job level should have a base pay, which can be adjusted according to different factors.They may be able to earn more due to things such as experience, job longevity, or education.

Offering benefits gives you some wiggle room on pay.If you offer great benefits then some people will settle for less pay.If you just offer mediocre benefits then they may not play a roll in the employee's decision to go or stay with your company.

Make sure that there is room to grow for your employees.If they come in making the most that they can ever make with you then they are going to feel like they are stuck in a rut.Give them the opportunity to make more, whether it is with longevity or performance or anything else.

Check the local competition.Find out what others are offering employees so that you fit in within your market.If you know what others are paying and have the budget to pay more then you just might get a competitive edge.
Offer bonuses.They can be something as simple as gift cards when employees hit a certain goal or an extra big check at Christmas time to help out your employees.Let them know that you appreciate what they do for you by rewarding them occasionally.

Always be sure that you are obeying the law.Know how much minimum wage is and watch for it to change.Know what is legal for bonuses and rewards.Make sure that you know the law so that you can avoid a costly law suit.

What is competitive in one area won't be in another.You have to factor your salaries on when and where your business is.You have to know who you need and how much you are going to have to pay for their experience.You will have to do your homework to find out what you are up against.