Deciding how much salary to pay and which employees to pay are two of the toughest questions you have to answer in both hiring and retention. Here are tips on whether or not you should offer your employees a comparable salary to your competitors.

What Is a Comparable Salary?

Most employers want to pay competitive salaries but defining that can be a chore. According to Denise Rand of HR Daily Adviser,

“being competitive means paying, on average, +/- 10 percent from the market-average pay for a job or a group of jobs.”

Using a salary comparison tool can at least get you the ballpark figure, but the real question is about the value you get by trying to keep up with the Jones’s when it comes to salary amounts.

Employee Turnover Costs Money-

Every part of a turnover costs money. When old employees leave, you lose productivity. A job search is expensive and time-consuming. Training a new hire is also expensive and time-consuming. You lose additional productivity while the new employee is learning on the job and from other employees trying to teach them. Paying a competitive salary is your best defense against employee loss and associated costs.

Better Pay Means Better Employees-

According to Scott Shane of Case Western Reserve University,

“while it might seem counterintuitive, paying “efficiency wages” – the term economists use for higher-than-market wages – can boost productivity and enhance profits.” 

Employees who work harder, are more positive with clients and are less likely to quit over salary are a tremendous asset to any business. If you’ve decided that you do want to be more selective in your next hire, contact Award Staffing. We regularly work and interface with high-value individuals who are seeking out a new job or career path. We will be able to present you with several candidates and help you put together the right offer package for the candidate you believe is the best fit.

If you’re looking to hire new staff, consider Award Staffing. We will be able to ascertain your company culture, values, and other parameters to help you find the staff you need. We can both find the best-fit hiring manager and play a role as your HR extension. Contact us today.