Just like religion and politics, the topic of wages and employee compensation has long been considered taboo. But now, with salary comparisons listed all over the internet, the secret is out. While the numbers are out there, there are many factors to consider to bring them in line with your own company and the relative market. Are you paying your employees enough? Let’s take a look.
Behind the Numbers
When researching salary comparisons, employers need to do their due diligence using reputable sources of information. Look for sources that are similar in market, location and experience to get the best idea of what other companies are offering for that same title or position.
That said, it really is like comparing apples to oranges. An employee working for a major corporation in Metro Vancouver is very likely to be making more than an employee in the same position at a small business in small-town Manitoba. While bigger cities tend to attract more high-skilled workers, there is also the cost of living to consider. On the other side of the coin, smaller towns offer a life-work balance and freedom that isn’t always found in an urban centre.
Other factors to consider when looking at the numbers include employee benefits, bonus plans, vacation time and more. Some employers may pay less than others but their overall compensation plan could be more robust and beneficial to the employee. Small businesses can offer more exposure and experience for those just starting out, which will allow employees to realistically work toward their long-term salary goals.
Make Sure the Salary Matches the Title
Some employers are quick to give out new titles instead of salary increases, which definitely affects the difference in wages across the board. For example, executive compensation can vary depending on the different levels, from C-suite to VP’s. Additionally, a newly appointed Director at a small business will make substantially less than someone with the same title at an established company with years of experience. While the new title may be an ego boost for the employee, it may also encourage them to ask for a salary increase to bring them up to speed with their more seasoned counterparts.
As an employer, your responsibility is to pay your employees fairly according to what you can afford and the true scope of their position. A dedicated compensation consultant can create a plan from a broader perspective and help you to understand how you compare in the market in relation to your competitors. Your employees want to feel valued and trust that you are rewarding them fairly for the work that they provide. Let’s work together to ensure that they are. Take advantage of our FREE 1-hour discovery call to learn more. Book now at www.truenorthhr.ca