Are you asking yourself the question: how much should I pay my employees? If yes, you can check out our guide here to learn how to set salaries.
No one gets out of bed wanting to be the Scrooge-like boss for their company. Grumpy, penny-pinching…you get the idea. And yet, if you mishandle some parts of your job, regardless of your intentions, that label will come around.
One of the crucial pieces of being a good boss is making sure your employees are getting paid a fair wage that keeps them happy without breaking the bank. But how do you set salaries to meet all these guidelines?
Well, you’re in luck. We’re here to give you the answer to that fabled question of “How much should I pay my employees?” So if you’re ready, let’s do this thing.
Make a Budget First
Before you decide how much to pay your employees, you first need to ensure that you’ve got the money to pay them. Some factors you’ll need to compensate for are benefits (if you’re offering them), sick leave, withheld income tax, and more.
Now once you’ve set this budget up, you can pass all the math off to a paystub maker so it doesn’t become your headache anymore. But until that point, it’s important to have at least a general idea of how much money you have to pay employees with.
Individual Factors to Consider
Once you’ve made your budget, it’s time to decide how much each employee gets paid.
Doing some research into the standard wages for someone of that position is a great place to start if you need one. If you’re interviewing potential candidates, taking into account their pay expectations also gives you a great scale to work off of.
The type of job someone is working also helps determine their pay scale. For example, you’re going to pay your top data analysts way more than you’re paying the guy who grabs you coffee every so often.
If your budget doesn’t have the room to pay top-tier wages, consider compensating by adding small benefits like a relaxed dress code or flexible hours.
These quality-of-life changes help to add appeal to a job and save you some money in the budget. What’s not to love?
How Much Should I Pay My Employees? Try the Legal Amount
One of the most important things to consider when creating a salary is to obey all laws regarding employee wages and the like. Choosing to ignore these laws or trying to loophole them for your financial benefit carry serious consequences.
For example, ignoring the minimum wage requirements could end up costing you up to $10,000, with an extra $1000 for every person you do it too after that.
Different states have different laws too, so make sure to stay up to date with what you need to cover from a legal standpoint.
Off to Work, We Go!
So how much should I pay my employees? You don’t have to ask anymore, you now know the answer to figuring it out!
For more business tips or info on the world of finance, check out some of the other posts on our blog! Make sure to share this article with anyone you know who needs help with salary calculations as well! Now, if you’ll excuse us, it’s payday.