The average American employee aged 35-44 years earns about $50,752 annually. This is the highest salary range when compared to all other age groups in the labor market.
Salaries account for a huge chunk of every organization’s budget. Most business owners often ask the question, “how much should I pay my employees?” to make the right financial decisions.
The question is pertinent more so if your workforce comprises employees within the 34-44 age bracket. In this article, we articulate some tips that can help you answer this all-important question, so keep reading to learn more.
Focus on the Person, Not the Position
One common mistake you can make is to focus on the job title instead of the individual employee’s ability.
When determining the actual salary to pay each employee, always focus on the personal contribution to the company’s success. If a specific employee’s input has had noticeable implications on sales or product development, then they deserve a higher pay range regardless of their rank.
Peg Salaries on Performance Reviews
Annual performance reviews go a long way towards determining how much you should pay employees. Based on such assessments, you can either increase, decrease, or maintain a specific salary range.
Are you asking yourself the question, “how much should I pay my employees”? You can use the performance reviews after every year to determine the specific increments to consider.
Consider Want Ads for Salary Data
With want ads for salary data, it’s easy to determine the going rate for specific job groups.
One of the easiest ways to get such information is to use classified ads in newspapers. You can then use the information to determine the approximate range for the particular position.
Look for Public Sources of Data
The Bureau of Labor Statistics is the best place to find quick geographical-based data on occupational compensation. The best part about this option is that the data is authentic.
The Bureau also offers additional information on benefits for each job group. This makes it easy for business owners to determine how to set wages.
Sign up for Wage and Hour Compliance Training
The enforcement of the Fair Labor Standards Act puts employers in a precarious situation. Without proper training, your business will be on the receiving end due to issues such as misclassification errors.
Taking a compliance course from an accredited program is the best place to start. You can consider wage and hour training. This course will help you understand how to ensure your employees’ wages are within the approved standards.
How Much Should I Pay My Employees?
Deciding on a compensation plan for your employees can be challenging. Multiple factors play out when making this decision. You
If you have been asking yourself, “How much should I pay my employees?” you need to balance paying competitive rates and operating within your budget.
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