Updated at 21/09/2022 - 11:43 am
The company's unfair pay to employees can affect the organization in attracting specialized talent and retaining qualified employees. Offering too low a salary will cause recruitment difficulties and setting a salary too high will pose a cost challenge for businesses. Setting the right salary scale for employees is essential to improve productivity and control costs. So try to build a fair salary.
Tips for paying employees' salaries #
In order to promote business development, it is essential to pay employees fairly. Therefore, with years of experience, our experts offer a few tips that businesses need to pay attention to:
- Job description: To ensure accuracy and completeness, it is necessary to carefully review the job description at your business. Each job position needs to be comprehensively evaluated based on a variety of factors such as level of difficulty or danger and the type of training and qualifications required for the job, against which to build scope. appropriate salary.
- Competitive rate: Compare salaries at your business with advertised vacancies for similar positions in terms of duties, skills and qualifications. You need to determine if the salary structure for similar jobs at other businesses in your industry and region, then assess your proposed salary is competitive enough and suitable for positions. that job is not. In addition, you need to keep an eye on employer surveys for compensation and performance benefits that are updated for your industry.
- There should be a salary system: Enterprises need to research the average salary for job positions by occupation and industry in the locality before making a decision on the salary to pay for each employee. Because not using any system often leads to unfair pay. Once employees discover the inequality, it will certainly cause resentment, envy and loss of teamwork at work.
- Build a progressive salary scale: Considering the monetary issue, changes in the labor market and from there, there is an adjustment of the salary scale for employees in the enterprise based on the increase in the cost of living and market conditions.
- Allowance mode: When businesses decide to pay salaries to employees, they need to consider the factors of their experience, certifications and positions. Collect employee profiles to see if long-time employees are being adequately paid as a reward for their seniority at the company. Examine employee training and development opportunities to decide whether certain job roles should receive higher compensation upon completion of training.
- References and research: Enterprises need to consult experts about salary and benefits for employees. Research situations related to salary, welfare costs for each employee. Based on that, make adjustments to suit the financial situation of the enterprise and the number of employees in the enterprise.
Method of setting up a fair salary scale for employees #
The construction of a salary scale for employees demonstrates transparency in paying employees at enterprises. Leaders have a basis and advantage in negotiating salary with each employee. Businesses can refer to some of the following methods of setting up a fair salary scale:
- Skill-based pay: Salary scales are determined by skill level, not by job title. Businesses need to create a list of skills required for each job position and develop criteria that show mastery of each skill. When employees achieve proficiency at any skill level, they will be paid a salary commensurate with that skill level.
- Salary based on performance: This salary scale model is based on employee qualifications or personality traits, rather than on specific skill levels. Salaries and raises are based on employees acquiring the required core competencies for their job positions.
- Pay by group, job characteristics: Businesses group a number of related jobs, for example, office assistants and receptionists are divided into administrative staff. From there, the enterprise assigns a salary to that group, but not based on the job title.
Above are a few tips as well as methods to build a fair salary scale for employees, thereby helping businesses show professionalism in the labor management system.