How to Determine Starting Salaries

Running a business has its perks, along with its challenges. A challenge you will face with hiring employees will be what to pay them. If your company is one in which employees are hired long-term, you will have to negotiate a starting salary that will leave room for raises and benefits packages.

Instructions

Determine Starting Salaries

1. Research your industry's compensation averages relative to your location and company size. Location will reflect the cost of living for the area. If you are not hiring at a competitive salary, then you could risk losing potential new hires to other companies.

2. Determine what it takes to do the position you are hiring for. What are the minimum education and experience requirements? Is it entry level or mid-career? The more it requires, the more it should pay.

3. Review the new hire's experience compared with those already in your company. Respect seniority of those already in your company, but pay your new hire appropriately.

4. Review the benefits that are offered with salary positions--this could impact whether a potential employee will work for you or the competition.

Tips & Warnings

• If you do not have enough in your budget to hire at a salaried rate, consider part-time, hourly positions.

References

• How to determine salary for a new hire
• Salary.com