As an Entrepreneur, sometimes you may find it difficult to determine how much salary to pay your staff. This may be because you fear paying too much or not paying enough. while country and employment differs, this article will guide you through factors you may consider. For the sake of simplicity, these factors are outlined and explained.
- Input to the organization
- Educational Background
- Working Experience
- Old or New with the Organization
- Achievement with your organization
- What others are paying for such role
1. Input To The Organization
The amount a staff will be paid should be dependent on the contribution that such staff is making to the progress of the organization. As such, someone that is in the position of policy and strategy should be paid handsomely after verifying that he is capable to carry out the tasks he has been assigned.
While some organizations pay sales people on commission basis, a sales person should be made to enjoy work benefits that will motivate him to drive sales for his organization.
Determine the roles that staff play in your organization, know those constituting the backbones and pay them according to their level of importance and contribution.
2. Educational Background
Naturally, the skills that an individual acquires studying are meant to equip him to perform effectively at work. The higher the level of education someone has acquired, the more positive input he will contribute.
HR departments of big organizations and entrepreneurs have come to see that the higher a person has acquired certificate, the more such one will be demanding when it comes to payment of salaries or wages.
As you decide on what to pay, ensure that you are not paid based on paper qualifications only, make payments after you have ensured that the one who claims that he is qualified can truly defend his certificate.
3. Working Experience
There is nothing like on-the-job-training in acquiring work experience. For this reason, when a vacancy pops up, recruiters emphasize experience as a yardstick for employing people. Depending on the technicality involved in executing the tasks, some organizations request up to 10 or more years when seeking a candidate for a role.When you seek such candidates, be willing to pay them amount that will be commensurate with their experience.
The value of experience cannot be quantified when it comes to ensuring effective production at work. As you seek experienced professionals who will serve as staff in your organization, seek those who have experience in the area that will truly make your firm grow and pay the experienced accordingly.
4. Experience With Your Organization
That your organization is big now does not mean it started as a big organization. There are those who have weathered the storm with you to the point of being big. True, you may start seeing hands that seem to be more experienced and more educated, they cannot play the role that a long serving insider can play.
As you determine how much you will pay who, do not underestimate the long serving members in your firm. Because they know the ropes, they will be more productive and loyal when they see that you appreciate their loyalty by paying them adequately.
If the person is new however, the opposite should be the case. Do not pay such too much until you have put their loyalty to the test.
5. Achievements With The Organization
The sales department of an organization have been considered the most important. This is because they are the ones generating the needed income for the company. While such income generation could be done collectively, there are individuals in the group who are ace performers. They outshine others in recording sales such that their organizations are on a pedestal that others envy.
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These ones should be compensated, rewarded in such a way that they will feel appreciated. By so doing, you are not just doing the staff some good, you are also doing your organization a lot of good. The performing staff will not be hijacked by others.
6. What Others Are Paying
The amount that similar companies are paying should be put into consideration as you determine the amount that you will be paying. When you check with others, you will know the different roles being played, their job description, and the amount they pay. As you do this, there is no need for you to rigidly pattern your payment modes after that of others. Set reasonable standard that will make your staff smile.
After you have decided on what to pay who, do not forget that it is important you pay your staff as soon as their money is due. Pay them the amount you have agreed to pay and you will end up putting smile on their faces as you witness your organization grow dramatically.