How do you figure out a fair wage?
This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.
Listed below are a few expert tips to help you decide:
Don’t Focus Only on Money
Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.
Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall compensation.
Focus on the Culture
Most employees today look much beyond the compensation offered by a company. They look at the culture of the company and see if they would fit well. Work is about satisfaction and happiness these days and that is the reason why your company culture should be good enough attract good hires. There should be closeness and flexibility in your workplace.
Perfect compensation includes good salary and some creativity at the same time. Of course the compensation should be able to keep your employees willing to work for you but you should also think about motivating your employees and encouraging them. Give your employees excellent incentives to keep them motivated. Nothing works as well as incentives!
In three simple ways you can keep your employees engaged with your company even if you are not able to pay well through cash. Work satisfaction, motivation, creativity, and flexibility matter more to many employees. In today’s world there are actually a very few so money-minded that they decide on joining a company solely based on the wages. The company culture plays a very important role as well.
Deciding on a fair compensation is difficult, which is why you should check the market standards and abide by them. Besides that you should pay close attention to what else you can offer to your employees such as incentives, time off, and so on.