Hiring? You may be stumped when it comes to selecting or offering the appropriate salary for the vacant position- especially if it’s a new position your company has never had before. You’ll obviously want to be in compliance with minimum wage laws, but as you advance further up the pay scale and away from entry level positions, salaries get a little bit more complex.
Salary is often representative of experience, skill set, industry and responsibility, and you want to attract the perfect candidate, don’t you?
How do you determine what to pay a new employee? Let’s review a few key factors:
- Do your research. There are a few good resources available which will provide salary data within your industry: www.bls.gov, www.payscale.com and www.salary.com.
- Education & experience: What degree, training, certificates does the employee have and how many years of experience does he or she have? Will you offer a higher salary for a candidate that brings more to the table?
- Job uniqueness: How rare is this job? Are there a lot of candidates capable of filling the position, or does it really require a rare and exceptional candidate?
- What benefits will you provide the employee with? Don’t underestimate the power of benefits, or the cost. Many employees will happily take a lower-paying position if it means full health insurance coverage for their family or special perks such as company gym membership, retirement account, commissions, expense reimbursements, transportation, and more. What can you provide? Analyze how much each benefit is really worth.
Once reviewing the abovementioned areas, it is recommended that you compile a salary range, versus a number set in stone. A range will allow you some flexibility for negotiations, and other factors such as a candidate’s unique experience or the need for relocation.
Still stumped? A PEO Can Help…
If you already work with a PEO, be sure to rely on them for attracting and retaining top employees. Comprehensive benefits packages and recruiting assistance brought forth by the PEO relationship will make sure your Company hires the right talent – at the right price too!