Tips for Setting Salaries

Posted on April 19, 2017

abc Payroll loves to hear about the successes of our different payroll clients in NH, MA, CT, and around Payroll MassachusettsNew England, including news about employee growth. Adding new employees to your business is both exciting and complex. You want to be sure you’re putting in the time and resources to outline your position correctly and find the right candidate. One essential aspect to a successful hire is setting the salary. We have a few tips for finding the right salary range to attract a qualified and beneficial employee!

Clearly define the job you need filled

Take the opportunity to describe all of the tasks you will require of this employee. Not only does this set a standard across the board, but it can also determine exactly how much you will require from this person and what that value could potentially be.

Determine how much value they will bring your company

Determine the most you would be willing to pay any one person for the position. The amount may set the standard to bring in qualified professionals, and could also help evaluate the salaries for other employees. Even if you have a world-class employee for their particular position, their wages might not be giving you the return you need to see.

Do your research

Get online and learn about the market for current eligible employees, looking for information such as the average pay for your city in that position. Doing some quick research is an excellent way to know what interviewees are expecting, and it can help set your expectations for the level of experience they might have, especially if you are hiring on the lower side of the averages.

Decide how you’ll pay

Depending on the position you are hiring for, this consideration will often help determine whether the employee will have salary or hourly pay. When their productivity is directly related to their work (for example, a receptionist), then they will likely do hourly work as opposed to a set salary. Ultimately, you must follow the employment laws regarding exempting an employee from overtime pay (salary) versus non-exempt for hourly.

Luckily, once this choice comes to fruition and you hire the employee, services like abc Payroll exist to make payroll easier than ever before! With professional service and personal dedication, you will rest well knowing your business and employees are in good hands with us.

With more questions, call us today at (978) 251-3003.