People may bring different passions and motivations to their respective workplaces, but all employees will ultimately be working so they can earn a steady paycheck to support themselves and their families. Therefore, salary is one of the top considerations that employees will make when determining where to work or whether it’s time to seek other professional opportunities. That means that as a business owner, you need to carefully consider how much you pay your employees to ensure that they are happy and feel appreciated, so they continue to bring their best performances to work each day.
What are the industry standards?
For each position in your company, you should have a clear job description and title, which will help you compare your salary expectations with industry standards. You can use data from the Bureau of Labor Statistics as well as salaries posted on job offers from competing companies to ensure that your expectations align with those who might be qualified to fill the position.
What does the law say?
If you employ minimum wage workers, you should be familiar with minimum wage and overtime laws. You should also know the laws for paying independent contractors and other special types of employees who may not have a standard salary.
What do your employees expect?
Of course, it doesn’t hurt to know if your employees are satisfied with how much they’re getting paid. Not only should you ask what potential employees expect for their earnings when they are hired, but check in during performance reviews with existing employees to learn if they feel they’re being compensated fairly.
How much can you afford?
With all of the questions above in mind, you should also think about how much you can feasibly afford to pay each member of your team, considering the cost of benefits and training as well. Your bookkeeper can be an asset when determining compensation for your employees, so be sure to use this resource as you make salary decisions.
Working with Kalil & Associates, you will always have an answer to questions like how much you should pay employees and how your business can save money. Our full-service accounting and bookkeeping firm in Tucson offers personalized services with technology that saves you time and resources. To learn more about us, visit our website or call (520) 628-4264.