The compensation package that you offer your employees is important not only because it costs you money, but because, let’s face it, it’s the primary reason employees work for you. Compensation package with good pay and benefits can help you attract and retain the best employees.
Deciding How Much to Pay
When you hire a new employee, deciding how much to pay will probably be a major concern. You want to pay your employees enough to recruit and keep the good ones, but not so much that your business’s cash flow is jeopardized.
The quickest and easiest way to find out the going rate for a particular kind of work is to see what others are offering. Check the classified ads in your local newspapers to see if you can find ads for positions that entail the same kinds of work. If you find that not enough of the ads include a pay range, you can always call the number listed in some of them and ask!
In addition to using the classified ads for salary data, you can ask other small business owners, employment agencies, or local chapters of trade groups in your industry. You can even try calling your competitions, especially if they happen to have jib openings.
Giving Employees Raises
Besides deciding how much to pay new hires, the other major concern of employers related to paying employees is how much of a raise to give an existing employee. There are probably as many ways of deciding this as there are managers!
However, there are two basic approaches to giving raises:
(1) Give everybody the same percentage or dollar amount raise, every year or two.
(2) Give employees different raises based on the quality of each individual’s performance, also known as a merit system.
If you give your employees unequal raises, be sure to document the reasons for the differences. How? As a part of the process of coaching and managing employees, most employers take some time every six months or every year to sit down with employees and discuss their performance, At the time of this performance appraisal, you can explain the employee’s raise and the reason for the amount. Another approach would be to give everyone small, cost-of-living raises, but then recognize superior performance with annual bonuses based on criteria that are clear to everyone in advance.
Benefits for Your Workers
While virtually every business has to give workers a paycheck, most benefits are optional. However, some types of time off are required by law, which include statutory holidays, marriage leave, maternity/paternity leave, work-related injury leave, annual leave, funeral leave and family leave. In addition to these mandated time-off benefits, there are others that you might consider offering to your employees. These leaves can be paid or unpaid: holidays, vacations, sick leave, personal leave, etc.
If you want to offer benefits in order to compete with other employers in your area, you need to know what you’re up against. Find out what other employers are offering by conducting an informal survey among your networking contacts, or by calling other businesses in your area and explaining that you’re trying to get a feel for which benefits to offer.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.
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