Olympic Staffing Services says the adage is mostly true: You really do get what you pay for.
The site goes on to say while this is the case, most business owners and managers aren't translating this knowledge to their payroll. And that could be the reason for increased turnover, lower job satisfaction and decreased productivity.
So how do you ensure you're offering a competitive salary?
#1: Develop pay structures according to guidelines you develop
The Practical Guide to Human Resources Management says must develop these guidelines through stakeholder participation. Examples of stakeholders you may want to include are:
Ask yourself these questions when you develop your guidelines:
#2: Conduct market remuneration comparisons
There are three tools you can use to conduct market remuneration comparisons: conduct your own research into market rates, research job advertisements in the media or buy a commercial remuneration survey.
Just keep in mind that it's costly and time-consuming to conduct your own survey. You have to consider the time you'll spend to design the survey, conduct the survey and collect, analyse and report on the data.
Paying your employees a competitive salary will benefit your company exponentially. So use these two tips to ensure your employees are getting competitive salaries.