How Much Should I Pay?: Setting Pay Levels


Setting your pay scale too low will not attract the experienced applicants you are looking for. Setting your pay scale too high might give you an expectation the person cannot achieve. The more important a person is to the ongoing success of the organization, the more the person should be paid. Employees usually fall into four main categories: indispensable, valuable, average, and replaceable. Placing each employee into one of these categories will help you determine where they should fall in the pay range. Remember that any employee can rise from one category into the next over time. As a result of improved performance, this will earn them an increase in salary. You can measure these milestones through quarterly or yearly performance reviews.

Yahoo! HotJobs (www.salary.hotjobs.com) has a free salary wizard that shows you what the salary ranges are for almost every position. You can even drill down to your particular city (see Figure 22.2). The data is collected from thousands of HR departments at employers of all sizes, industries, and geographies, to show you the base, median, and high salary range.

Figure 22.2. Yahoo! HotJobs (www.salary.hotjobs.com) has a free salary wizard that shows you the salary ranges for almost every position.


Another great way to find out what other employers are paying for similar positions is to visit online jobs sites and search for the same position. Most often, employers will display their pay range for that position.




Succeeding At Your Yahoo! Business
Succeeding At Your Yahoo! Business
ISBN: 0789735342
EAN: 2147483647
Year: N/A
Pages: 208

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