How-to for Businesses: Creating a Competitive Salary Structure

by Ryan

.

How-to for Businesses: Creating a Competitive Salary Structure - ManageStaff

The First Steps in Developing An Appealing Salary Structure

 

If you hope to entice new employees and retain them, you need to create appealing incentives for current and prospective staff members. One of the best ways to gain an edge over your competitors (in terms of building a strong staff) is to create a competitive salary structure. Millennials have unique financial concerns, such as college debt that is increasingly higher than for previous generations. Therefore, area businesses may wish to consider the benefits of hiring a Phoenix HR services firm, in order to help them create salary structures that will appeal to the current generation.

Read More: Hiring Qualified Candidates: 4 Steps To Ensuring A Great Company Fit

Establish a Competitive Pay Scale

One of the first steps you’ll need to take is to do some research on wages in your industry. You can either hire personnel to do this task for you, or you can begin outsourcing employer administration Phoenix businesses trust. Explore the average pay scale being offered by your competitors, and then determine how you will compete with such pay within your own company.

 Consider Your Priorities

Every company has different priorities worth considering. If your main objective is to maximize your budget while remaining competitive, you may need to offer wages that are fair, but not so high that your available funds will be quickly depleted. As a way to offset relatively lower wages, you might offer your staff members various other incentives (such as stock options). If your main priority is to hire the best candidates in your industry, you may need to offer them a level of pay that is virtually guaranteed to interest them.

Decide Which Factors Will Determine Pay Raises

Another aspect of establishing a competitive pay structure is choosing the factors on which to base salary raises. You may decide that employees should be given raises solely based on work performance. Another option is to give pay increases based on how long employees have been working in their current positions. Be sure to communicate with your staff members in regard to what they should expect, in terms of salary increases.

Creating a competitive salary structure is a viable strategy for attracting and keeping good employees. Many Millennials are currently interested in getting jobs that will help them to pay off their considerable student loans. By employing professionals who know how to implement Phoenix payroll, a business owner can choose the pay structure that suits the needs of the company.