There are a lot of things to consider when you’re negotiating salary with an incoming employee. But what does it mean to be truly fair with your compensation package? Before you go too far down the rabbit hole, it’s helpful to have some things in mind as you get started. What considerations should you be making about past salaries, long-term goals, additional benefits, and the current employment market in your area? Here are some simple steps to help you start.
Previous Salary
Many companies require their candidates to provide data on their previous salary, but this can become a challenge. The truth is, to create a more even playing field for qualified candidates, each job should have its own salary range and as long as the individual is capable of the job, their previous pay should have no bearing. Avoid asking your potential candidates for their histories but pay fairly based on your needs.
Your Budget
To determine the salary for the job, you will have to consider more than just the money paid to the employee. Your overall budget for the department is also an important factor. Before you even begin your search for a new employee, take a look at your budget to see what you can sustain in terms of incoming salary. Make sure you’re considering every aspect from pay to benefits, as well as the budget to run this department efficiently.
Competitive Salaries
Always do research on similar positions in your area. Specifically, you want to look into the rates that are typical for this job in your region. Luckily, this information is easy to find with access to the internet. The most common tool is Salary.com which can provide the average salary for your area and include information on additional benefits, as well.
Additional Benefits
And for many employees, these additional benefits are as important as the base salary itself. Incoming candidates are likely looking for more than just medical and dental benefits. There are more things you can provide such as a 40(1)K match or other financial savings programs. There may even be additional perks like flex time or remote working opportunities that will attract talent.
Learn more about salaries in the Southeast Michigan area using our salary guide.
Are you ready to make your next hire and pay fair salaries? Contact the staffing experts at Harvard Resource Solutions today for help finding the best employees Michigan has to offer!
