Compensation is one of the most common sources of conflict between employers and employees. To avoid disputes further down the road, it’s important to set a fair salary and benefits package before you start looking for a new hire. What should you consider when determining the appropriate compensation level for a given job opening? Here are some tips to get you started.
Consider the position
What are the exact duties you expect your new hire to perform? Determining the level of expertise needed doesn’t just help you choose a salary range, it also helps you direct your hiring efforts in the right direction. Before taking any other steps, you must know exactly what type of employee you’re looking for.
Research the average level of compensation for the position
The Bureau of Labor Statistics (BLS) is an excellent starting point for researching wages. Their database includes salary and compensation statistics for some 800 specialties and is sure to get you on the right track, at least down to the state level. Since the average level of compensation can vary dramatically depending on your area, however, it’s best to perform local research as well. Reviewing job postings from competitors and placement agencies in your area will provide more exact information.
Review your budget
There’s no point in seeking out candidates who are out of your budget’s range. Inevitably, they will pass on your offers, and you will only have wasted your time. Conversely, bringing in underqualified workers just because they are cheap to hire will cost you in the long run. Instead, settle on a salary range that fits your budget and expectations. Then, seek out candidates whose qualifications match your needs and projected level of compensation.
Picking a salary range
The appropriate salary range will depend largely on the position. Entry-level jobs (and entry-level candidates) tend to have little variation in their requirements and qualifications. In these cases, a fixed salary offer could be the simplest, most logical solution. In contrast, more complex positions might require you to offer a wider salary range.
Find your candidates
As difficult as determining appropriate wages can be, finding qualified candidates is an art of its own. At All Quality Labor, our recruiting expertise can help your search be successful. With access to the best manufacturing, light industrial and construction workers in the state, we can guarantee we’ll find a great candidate for your business. Contact us today to learn how to get started.