5 ways to set new employee salaries
Before applying for payroll funding from Flexible Fund, we recommend setting your employee salaries based on particular criteria. Determining employee’s pay levels is something you should do while creating a new company’s business plan.
One: Education Level
When hiring an employee, their education level is a consideration when selecting a salary level. An employee with a master’s degree should have a higher wage than a high school graduate does. When hiring employees, it is a good idea to request a resume before the interview to understand the potential employee’s education level in order to make an offer. In addition, it you want to encourage employees to remain with your company on a long-term basis, it is wise to increase pay levels as employees earn more degrees.
Two: Level of Experience
In addition to education level, you should consider an employee’s work experience, especially if it is in the same industry. An employee with 10 years of experience working as an electrician can offer more to your company than an individual who is just beginning their career. If you aren’t willing to pay an experienced employee more than an inexperienced worker, then you are going to struggle to keep a business operating.
Three: Scarcity of Employees
In some industries, there is a shortage of employees with the correct training, and you may need to pay someone more if they have specialty knowledge. Finding a registered nurse to work for you is more of a challenge, and to hire an individual with specialized knowledge, you will need to negotiate pay.
Four: Number of Hours Worked
In many cases, a business owner will offer a full-time employee a higher hourly wage than a part-time worker in their company earns. In addition, a full-time employee will typically receive benefits such as vacation pay and retirement benefits.
Five: Responsibility Level
An employee who is working in management should receive a higher level of pay than a subordinate employee does. A management position is usually salaried because the individual must work long extended hours while lower-level employees work a set or flexible schedule.
Applying for Funding
After deciding the wage levels for your new business’s employees, you are ready to apply for payroll funding to begin operation. Payroll funding makes it possible to have the money needed to offer salaries to employees until it is earning a profit.