Pay and reward
Pay and reward
Deciding how much to pay staff
'Pay' means the pay and benefits provided by the contract of employment between you and your employee. When making decisions about how much to pay the staff in your business, a variety of factors need to be considered, such as:- What starting pay to offer.
- How often and by how much pay should be increased.
- Whether bonuses or rewards for performance be offered, or other work related pay benefits be given, to attract and keep the best staff.
Many small businesses have no formal pay system in place and rely on historical pay rates, market trends or competitor pay rates, or the negotiating skills of individual employees when deciding on rates of pay. This can be extremely damaging though as pay bills can be difficult to control and can also be discriminatory, leading to poor staff relations and affecting staff turnover.
Although people at work are motivated by more than just pay, workers who feel that they are rewarded fairly in terms of the pay and benefits they receive are less likely to be resentful or dissatisfied.
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