Archive for June, 2010
Not Paying a Competitive Wage (Too High or Too Low)
Common Hiring Mistakes: Part 10
It is tricky business to set a proper starting salary for a position. Pay too much and you will hurt the company. Pay too little and you risk losing key employees to better paying firms. When setting a wage, it is important to look at the following four factors:
1. Prevailing wages in your market: This is by far the most important criteria in setting a wage. In 1970 an accounting clerk made around $6.00/hour. In 1990 the same clerk probably made around $9.00/hour. The 1990 clerk wasn’t necessarily 50% better, but inflation and economic conditions had caused the wage to be 50% higher.
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