How do you decide what to pay your employees in a small business?
Posted on August 9, 2008
While my previous writings talk about making your employees happy and hiring in a small business, the wage you pay has one more meaning and importance that I haven’t covered before. Sure, when you are small, is hard to compete with big business in offering strong packages to your employees, insurance and benefits. Even more difficult when you are bootstrapping along the way, growing your business without outside investment.
But that’s not what I want to talk about today. The wages you pay have another important meaning as well: value. Sometimes people tend to evaluate their professional and social position depending on the amount of money they get. Sometimes it doesn’t matter you are a manager or whatever at a great company, because if your friend has a better payment at an unknown company, then it might be that he is more valuable than you. Or at least that how some people think.
If the amount of money you are paying your employees is a sign of their value, then how much should you pay them? Because no matter how many evaluations you make, sometimes the real value of an employee is more than you can measure - might not be the very best on standard evaluation terms, but might be just the ones are building the long term value of your company.
Well, I really have no idea. You can measure how much money they bring, what would be the costs of hiring a new person, or whatever else, but how can you translate their value in money?
Related posts- Start a business with your family?
- Entrepreneurship is a way of life
- From business professional to Entrepreneur
- Hiring in a bootstrapped company
- Small Business compete with Big Corporation
» Filed Under Entrepreneurship Tags: Tags:hiring
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