Attracting and holding on to high-quality employees requires a salary structure that is both competitive and fair. It’s important to determine your company’s philosophy in terms of compensation and benefits. Some businesses like more established salaries, while others prefer a variable salary structure based on the company’s sales or profit margins.
Keep the following factors in mind as you decide on a salary structure:
Keep the following factors in mind as you decide on a salary structure:
- Industry compensation averages. This refers to the industry your company falls under and the benefits packages offered by similar-sized companies.
- Other employees in your company. Make sure you take your employees’ years of service and experience into consideration when deciding on salaries. The last thing you want to do is hurt staff morale by creating a large salary disparity.
- Median income in the area where your company is located.
- Economic factors. Visit the U.S. Bureau of Labor Statistics’ website, www.bls.gov, for federal government research on salary ranges. Also check out data from the Economic Research Institute at www.erieri.com.
Compensation in your company must have a direct correlation with the accomplishment of your goals, mission and vision. This is an important tool in creating your company’s culture. Also, at a time when many people are looking for employment, take the opportunity to hire high-quality employees rather than skimping on salaries and benefits.
Finally, remember that communication in your company is critical, so please create a system that allows all of your employees to understand and value your salary philosophy.
Let Zions Bank’s Business Resource Center assist you with your business needs. Call us for a free appointment at (801) 594-8245. We are open Monday through Friday from 9 a.m. to 5 p.m. Beth Holbrook can be reached at beth.holbrook@zionsbank.com.
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