Sometimes a person that is hired to fill a vacancy may not fit the salary that is posted with the job listing, or you need time to quantify “compensation commensurate with experience.” If the payments are too low, you risk losing employees to other companies or having a set of employees who perform poorly because they do not feel valued. Here are a four ways to approach when paying a new employee:
- Salaries should be specially determined. Sure, you may have included a list of minimum qualifications and preferred experiences, and maybe you even specified an exact salary in your job listing, but that number may not be appropriate for the person you ultimately hired. Each applicant offered a unique combination of experiences, skills, and strengths to your company, and you need to weigh all of these factors when determining a salary. Consider the education of your new hire, the extent of their previous experience, the money you will have to spend training them for the position, the uniqueness of the position being filled, and the amount of time that person can commit to the job.
- Payments and perks. When a potential employee is deciding between job offers, he or she may want more than the biggest salary. The “quality of life” perks and other benefits can lure that potential hire even if your salary isn’t the highest. Consider offering a flexible work schedule or offering unique perks like a “fitness” allowance or monthly gas cards.
- Institute incentives. People are more motivated to perform when there is a tangible, desirable reward at stake. If your new hire’s performance can be measurable by the amount of sales or something similar, consider instituting a bonus or commission structure in addition to a salary. Payments based solely on incentive plans are often undesirable because of the potential to not make anything, so when you combine a salary with incentives, your employee will feel secure in his or her job but will have that extra perk as motivation to perform well.
- Compare the competition. If your new employee is filling a completely new position in your company and you are unsure of an appropriate salary, research what similar companies are paying for that position. Websites like PayScale or Glassdoor may provide useful data. Once you have an average figure, you can adjust it to your company’s budget or the qualifications of your new hire. If your new employee asks for a much higher salary than what is being offered at similar companies, you then have data to help you negotiate your way down to your original offer.