What Factors Will Influence How Much Your Employees Are Paid?
What Factors Will Influence How Much Your Employees Are Paid? Deciding on the appropriate level of pay for each of your workers can be a tricky task indeed. After all, your employees will need to be paid a certain amount if they aren’t to stray in the direction of other companies. However, you also can’t afford to pay more than your business’s budget allows. So, what are some of the key factors that our Recruitment Experts would urge you to consider when setting pay? Experience If one of your employees has a greater amount of relevant job experience than another, they can typically expect to be paid more. That term ‘relevant’ is especially important here: a given worker may have many more years of job experience than another, but they may have made one or more career changes down the years, meaning they have less experience in their current position. Education A worker with a higher level of education will, again, tend to earn more than someone with a lower level of education, although this isn’t always the case. So while someone with a PhD might normally be paid more than someone with an HND, the applicability of such education to the job is also crucial. It might not therefore always make sense to pay a more educated worker more than a lower-educated one. Performance Does the employee in question consistently go above and beyond what may be reasonably expected of them? In that case, there’s a good chance that you will wish to reward them with a higher level of pay. That may be especially so if you can see a real difference to your company’s revenues as a result of their contributions. Location Some parts of the UK are associated with higher wages – typically correlating with increased living costs – so this is another factor that you may need to think about. Affordability This is the most important factor of all to consider when you are setting pay, as you can’t offer salaries higher than what your business can afford. Even if what you can afford isn’t high enough to be competitive with what rivals are offering, don’t allow your company to run into debt simply to capture or retain a particular worker’s services. Instead, think about what other value you could give to this employee. Maybe you could provide them with better work conditions or benefits? Could your organisation benefit from the assistance and solutions of our Leading-Edge Recruitment experts? If so, don’t hesitate to get on the phone to us, calling 01392 829400.