If you’re looking to hire a new employee, it’s a challenge to figure out how much to what to pay them. You don’t want to overpay for talent, but you also don’t want to pay too little or they won’t stick around for very long. Figuring out what to pay candidates varies based on experience, location and available talent.
Too often, business owners don’t use a proven process to determine salaries, and this just comes back to bite them. They may ask a few business-owner friends what they pay their people, and that’s their gauge. Sometimes, they don’t even go that far. They just come up with a number! But hiring this way affects the business owner’s ability to recruit good, solid candidates, and their ability to keep productive employees who have a lot to contribute to the company.
Business owners, who tend to watch every penny spent in their business, tend to say they just can’t pay competitive wages! They don’t have the money (when a lot of times they do, they just don’t want to spend it!). Well, if you start paying top dollar, you’re going to get top talent, which is going to translate into more money for your business. See how that works?
In this video, Brad Farris walks you through 4 easy steps to help you determine wages so that you can find a solid pay range to advertise your job and attract strong candidate pools.
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