Is offering minimum wage right for your business? Even if you don’t offer the bare minimum, are your salaries too low? There comes a time when all firms should increase the pay they offer. Below, we take a look at the issue of rising salaries in further detail, presenting you with some of the reasons why increasing your salaries can be a good idea.
Signs you are not keeping up with increasing salaries
Are your retention rates low? If so, this is the most obvious sign of them all that you are failing to keep up with rising salaries. When an employee is not paid enough, they feel undervalued, and when they are undervalued, they look elsewhere. Plus, without modern outplacement services, this could lead to you having disgruntled ex-employees and bigger issues on your hands.
You may offer other perks, such as gym memberships and group healthcare insurance discounts, but they will only satisfy for so long. There does come a day when you need to increase your employees’ salaries, otherwise, you risk losing them altogether.
Increasing salaries can benefit you
It’s easy to view increasing salaries as a nightmare scenario. How can it possibly benefit your business? In fact, there are numerous advantages. Firstly, you will boost your company’s brand. By boosting low-level salaries, your company will be viewed in a positive light. That’s not the only advantage; you will also boost employee satisfaction and improve retention rates. Employees perform well when they are happy and healthy. Financial worries plague so many people, and if their salary is too low, the stress can take over. You will also attract the best talent as well.
How to get the price right
Knowing how to get the salary right for a certain position can be difficult. Of course, you need to look at internal finances and budget effectively so that you can determine how much you can afford. Nevertheless, you also need to look at the competition to determine what the average salary is for the role in question. You can do this easily be looking at recruitment and job vacancy websites. Look at different adverts for roles relevant to your firm, and see what they are offering. It does become somewhat difficult when job applications do not state the salary, or they do a wide range and say it is based on experience. Luckily, there is plenty of research online to give you a good understanding.
Of course, city, experience, and skill will determine how much a person is paid, and so you can factor in these variables to decipher whether you are offering the correct salary, or if you are failing to keep up with rising salaries.