Are you asking yourself the question: how much should I pay my employees? If yes, you need to check out our informative guide here.
Before an employer offers a job or even extends an interview to potential candidates, they are always stuck with one question: “how much should I pay my employees?”
You want to make sure you are paying them the right amount; here is a short and informative guide on how much you should be paying your employees.
How Much Should I Pay My Employees?
“How much should I pay my employees?” is a question with not as simple an answer as you would hope for. You want to pay them a good salary which competes with other offers they may receive. But at the same time, you do not want to overpay – and you want to make sure you get a good return on your investment. So how exactly do you determine what is the right amount?
Research The Skills and The Demand For Them
Write down the skills required for the job and then do your research on the demand for the skills. The higher the demand, the higher your pay rate will have to be. The more specialized the skill, the higher the pay rate will have to be. While most able-bodied individuals can do basic manual labor, there are a few who know how the fundamentals of cybersecurity. Your employee pay rate will be based on these metrics.
How Much Do Competitors Pay?
Remember, you are competing with other companies to hire an employee. Part of winning this competition is to see what the competitors are paying. You can use a service like Glassdoor to research these pay rates. Based on your company’s budget, you will determine the pay rate. If possible, you want to make sure it falls within the range found with your competitors.
Make Sure You Pay At Least Minimum Wage – But Go Higher If You Can
By law, you must pay at least the federal minimum wage. Your state may have its own minimum wage – and if it is higher than the federal minimum wage, then the employee must be paid at least this amount.
Ideally, you would want to attract candidates by paying them higher than the minimum wage. Normally, the minimum wage is for entry-level and low-level positions. Even if you are hiring for such a position, you give a greater incentive if you can offer better than the minimum wage – though you will also have to evaluate if the candidate is worth and skilled enough for this extra amount.
Benefits and Conveniences
In addition to the employee’s base pay, there may be other benefits you will want to offer to draw in the best talent. These can include a holiday bonus, paid time off, or reimbursements for educational expenses or gym memberships. Additionally, you want to provide certain conveniences for your employees. This includes providing their W-2 in both print and electronic form at the beginning of the new year (and as early in the new year as possible). This also includes providing a paystub which details how much they earned, how many hours they worked, the pay period, as well as relevant tax withdrawals. Paystubs can easily be made using a paystub maker.
Now that you have answered the question “how much should I pay my employees?” it is time to start posting your job description and recruiting the best talent. Offering the best deal will always be a challenge with all the competition. Make sure you are always up to date on laws, on pay rates, and what your rivals are doing so that potential candidates always see your business as the best place to work.