If you’re looking for a new hire that will help your small business grow and develop, you’ll likely need to offer them a position – and a salary – that meets their own needs for growth and development.
Salary is a significant factor for the majority of job seekers, but aside from knowing that you must pay new hires in accordance with the latest wage and hour laws – which Coral Springs accountants can help you get to grips with – knowing how much you should be offering a new hire as a business owner, isn’t always easy.
To help you determine what to pay a new hire, here are some factors that should play a significant role in your decision-making:
Educational and experience requirements
Finding a candidate with the right set of skills for the role you’re offering, usually means offering a salary to match that level of skill and experience. The best way to gauge what you should be paying someone whose resume fits the bill, is to look at what others in the industry (and in your region) are offering their employees for similar roles.
You can visit the website of the Bureau of Labor Statistics, or BLS, to find up-to-date wage statistics for a range of occupations, that may help you come up with a figure.
Your specific industry
While industries like retail and hospitality are typically low-paying, others such as healthcare and engineering, are higher. However, if the vacant role you need to fill is critical to your businesses profitability, you may be forced to pay a salary and benefits that is higher than the market average.
Supply and demand
It may be that skilled candidates within your industry are in short supply in your region. To attract the type of talent that you need, you may be forced to offer more than the going rate.
Value of the right candidate to your business
If you’re expecting a new hire to generate a certain amount of revenue for your business in the first year, or be skilled enough to propel the business forward, you’ll need to align your salary offer in accordance with the value you anticipate the new hire will bring to your company.
The candidates expectations
When interviewing candidates, try to determine the factors that are driving them, such as whether they’re looking for increased responsibility, a career path that moves towards management, or an increase in salary, for instance. What they tell you should help guide you towards a salary figure that both sides find acceptable. It may also be that in return for a good health insurance package, or the opportunity to work remotely, a candidate may be willing to lower their salary expectations.
Using the services of professional accounting in Fort Lauderdale, you can assess your businesses financial forecast, and have that as a guide while you assess the needs and expectations of a potential new hire.
Often, striking a balance between attracting the right new hire for the role you need to fill, and being able to pay them a competitive salary that you can afford, is hard. However, by thoroughly assessing your financial situation, considering the points above, and listening to the advice of an accountant, you should be able to come up with a figure that both parties are satisfied with.