How to set your team's salary?
Posted: Sun Dec 22, 2024 9:44 am
If there were a single answer to this question, or better yet, if we had the perfect recipe for setting the perfect salary, we wouldn't need this column. On the contrary, the real world is more complicated than a simple recipe, and entrepreneurs know this very well. Now, there is no need to panic, as there are certain guidelines when answering the following question : How much should I pay the new member of my team? First, congratulations for reaching this point with your business, and second, I hope these recommendations clarify your question.
Before developing certain ideas, I believe that we have the same basic objective, to have a philippines business mailing list good human resource that contributes positively to our team and, no less important, to pay what is fair! We believe that there are certain steps that we can follow to determine a good salary. The first would be to determine a ceiling, that is, the maximum that you are willing to pay, here one of the questions that you can ask yourself is the following: How much added value can this person generate in my company? This question can be answered without difficulty if you are looking for an employee who generates benefits according to the sales or agreements that they can obtain, for example, if the potential executive can close agreements for $1,000,000 CLP, you should consider a salary below that amount considering a percentage for the company's profits. Can you imagine paying a salary that is above the benefits that they can generate? I think that is not a favorable scenario for you or for your company/enterprise.
Along the same lines, what happens with administrative or managerial positions? That is, those that do not generate direct income but are essential for your company. Here we must focus on how much money they can save us if we count on their work. The question to answer would be the following: What would be the cost of not having them on my team? For example, if you think it is necessary to have an IT professional on your team to configure the network in your workplace, how long would the configuration take? Of this time, how much would it affect the correct functioning of my company? How many people would benefit?
Now that we can, to a certain extent, respond with the maximum ceiling that we wish to pay, what would be the minimum? This is where the market comes in and allows us to take into account a “floor” so as not to pay less for the services of whoever we wish to hire. (Tip: visit https://tusalario.org/chile/main ). In addition to our tips, what can your contacts in the field in which you work tell you? Here you can verify very valuable information for your decision that cannot be found through a web portal.
Continuing, how will we pay? If we want to pay by hour we must consider that the job is directly related to the benefits obtained from its activities (more hours worked should generate more benefits and vice versa). On the contrary, if we want a base salary, we must consider all the tasks and hours that the person will dedicate to its completion. Also, will you consider commissions, bonuses or benefits? These are costs that must be associated with the salary you wish to offer and can be compensated (in their absence) with non-monetary benefits such as: Offering specific professional development, a good work environment, flexible hours, health benefits, family benefits, among others. What type of benefits do you offer?
Finally, and going back to the first statement, there is no recipe for calculating the perfect salary. However, the mix of these recommendations can give you the following information: knowing how much you are willing to pay, how much the work of the person you are looking for for your team is worth, and what the candidate expects (according to the market) . With these answers, you can determine a salary that minimizes the risks of overvaluing or, on the contrary, paying less than what is due to a potential member of your team.
Before developing certain ideas, I believe that we have the same basic objective, to have a philippines business mailing list good human resource that contributes positively to our team and, no less important, to pay what is fair! We believe that there are certain steps that we can follow to determine a good salary. The first would be to determine a ceiling, that is, the maximum that you are willing to pay, here one of the questions that you can ask yourself is the following: How much added value can this person generate in my company? This question can be answered without difficulty if you are looking for an employee who generates benefits according to the sales or agreements that they can obtain, for example, if the potential executive can close agreements for $1,000,000 CLP, you should consider a salary below that amount considering a percentage for the company's profits. Can you imagine paying a salary that is above the benefits that they can generate? I think that is not a favorable scenario for you or for your company/enterprise.
Along the same lines, what happens with administrative or managerial positions? That is, those that do not generate direct income but are essential for your company. Here we must focus on how much money they can save us if we count on their work. The question to answer would be the following: What would be the cost of not having them on my team? For example, if you think it is necessary to have an IT professional on your team to configure the network in your workplace, how long would the configuration take? Of this time, how much would it affect the correct functioning of my company? How many people would benefit?
Now that we can, to a certain extent, respond with the maximum ceiling that we wish to pay, what would be the minimum? This is where the market comes in and allows us to take into account a “floor” so as not to pay less for the services of whoever we wish to hire. (Tip: visit https://tusalario.org/chile/main ). In addition to our tips, what can your contacts in the field in which you work tell you? Here you can verify very valuable information for your decision that cannot be found through a web portal.
Continuing, how will we pay? If we want to pay by hour we must consider that the job is directly related to the benefits obtained from its activities (more hours worked should generate more benefits and vice versa). On the contrary, if we want a base salary, we must consider all the tasks and hours that the person will dedicate to its completion. Also, will you consider commissions, bonuses or benefits? These are costs that must be associated with the salary you wish to offer and can be compensated (in their absence) with non-monetary benefits such as: Offering specific professional development, a good work environment, flexible hours, health benefits, family benefits, among others. What type of benefits do you offer?
Finally, and going back to the first statement, there is no recipe for calculating the perfect salary. However, the mix of these recommendations can give you the following information: knowing how much you are willing to pay, how much the work of the person you are looking for for your team is worth, and what the candidate expects (according to the market) . With these answers, you can determine a salary that minimizes the risks of overvaluing or, on the contrary, paying less than what is due to a potential member of your team.