Whether you’re an employee asking for a raise or a manager being asked to give it, talking about compensation can feel uncomfortable. But there’s no reason why having respectful, discreet, and productive conversations about money feels impossible. With a few points of preparation and conversation, it can be easy to learn how to discuss salary.
If you can’t reach an agreement, you may need to consider other, more affordable candidates. Truly excellent knowledge workers do ten times more work than just good ones, but they only get paid 20 to 30 percent more. Other times, the market overvalues value (can you say “Fortune 500 CEO salaries”?). Either way, candidates expect you to at least pay market rates unless you can offer good alternatives. See Salary.com for salary ranges sorted by job title and geography.
PaymentSalaryFixed compensation calculated weekly, biweekly ( what is bi weekly pay ) or monthly. Piecework systemEmployees are paid based on the number of items produced. Types of incentive plansAlliesCommission plansAn employee may or may not receive a salary, but is paid extra (for example, a percentage for each sale made). Bonus plansExtra payment for achieving or exceeding a predetermined objective. Bonus plans can consist of monetary compensation, but also in other forms, such as leave or gift cards. Annual bonuses paid to employees based on the amount of profit the organization earned.
Stress management programs, retirement planning services, and reimbursement of fitness classes are just a few examples of what your company might consider offering to employees. Competitive compensation packages play an important role in persuading candidates to accept vacancies. In addition, companies can end up paying managers the same salary their direct reports should earn, or even pay employees more than the maximum salary for their work. Keep in mind that it’s easier for an organization to agree to give a pay raise when it plans for the next fiscal year. Giving a pay raise during the fiscal year is difficult if there is no budget for it, which is usually the case in most organizations.
Either way, it’s wrong for a manager or organization to impose additional tasks or responsibilities on an employee without discussing and clarifying the expectations of both sides with the employee in question. If you don’t, you usually create a feeling of unease or even resentment in the employee. If you find yourself in this situation as an employee and feel that you deserve a pay rise (again, sometimes an increase is justified, sometimes not, it depends on the circumstances), you should request an appraisal interview. If you don’t understand the organization’s method of giving pay raises, your first step should usually be to discuss this with your boss. Reward is usually linked to performance, which allows the company to increase, or promote, its rating, or give a bonus.
It gives you similar jobs in the market and pay scale, a place to start determining what you’ll pay your employees. Repeat salary surveys periodically to make sure your salaries are still in line with industry standards. Of course, the EEOC ensures that the payment is fair to everyone and does not discriminate.
The autocratic approach to this challenge is usually to ignore it or, at best, force employees to join the organization, which somehow overlooks the core problem. When employees find it difficult to adapt to their employer’s goals, values, and methods, it gives a strong indication that the organization may need to consider a reshuffle. Objectives and bonuses provide a very useful mechanism for exploring such an adventure. If the employee leaves, the organization clearly sees that the role is insufficiently valued and rewarded. It is not uncommon, particularly in sales, to take a pay cut from a well-paid performance-related sales job to management for the first time. In some companies, the best salesperson earns more than any manager, perhaps two or three levels up the ladder.
But to be employed, employees must meet specific duties and other requirements set by the Department of Labor. For example, hourly wages typically give managers more flexibility in setting employee hours, which can be an advantage for positions that don’t have consistent scheduling needs. To determine the right salary for each employee, establish a range of how much an employee should be paid in each position. Where each employee falls within that range is based on the expectations you have for those employees and their previous work experience. While it takes more effort and time to determine salaries for new positions, once you’ve established a salary range, you can use it as a starting point when hiring more employees for the same or similar roles.
You can make a good start by deciding in advance how you will hire, inspire, support, train and lead your team. A payroll management system is a software technology designed to make the execution of salaries easier for companies. It automates many of the most laborious processes, such as calculations, deductions, and payments, and in some cases includes tax reporting services and compliance support. Today, many vendors offer payroll management as a stand-alone product or as part of a broader set of integrated HR capabilities. Then, and this all depends on the industry you’re in, you may need to talk to your attorney to make sure that what and how you plan to compensate for a particular position is legal.
Fundamentally, this is how market considerations translate into organizational goals and objectives, which in turn are translated and broken down into departmental/divisional objectives, on which objectives are usually based. (This hierarchy of the structure of the business planning stages is displayed in the marketing section.) Goals and bonuses should normally be strongly related to the goals and performance of the organization in its market. These performance targets and issues are certainly not limited to financial considerations, and certainly not to performance metrics for the short or current years of the fiscal year.