IRS WARNS OF 2 NEW TAX SCAMSJuly 22, 2019
TAX PLANNING INCLUDES DETERMINING FILING STATUSJuly 25, 2019
FINDING A SALARY RANGE THAT ATTRACTS AND RETAINS VALUED EMPLOYEES
Whether you are hiring for the
first time, filling an open position, or conducting annual performance reviews,
finding a salary range that attracts and retains valued employees can be a
difficult task. Here are some suggestions to help make the process a bit easier
for you and your company:
- Know what your business can
afford. Like any business expense,
you need to know how it will affect your budget and cash flow. Make a
twelve-month profitability and cash forecast and then plug in the high end of
the annual salary range you are considering to see if it’s something your
business can absorb. After all, the greatest employee in the world can’t help
you if you don’t have the money to pay them. Don’t forget to account for
increases in benefit costs, especially the escalating cost to provide
healthcare. Once you establish a budget, you can allocate your spending plan to
- Understand the laws. In general, the federal government sets the minimum
requirements (minimum wage of $7.25 per hour, overtime rules and record keeping
requirements). States and localities often add their own set of rules. For
example, the state of Illinois, Cook County and the city of Chicago all have
different minimum wage requirements. If you are located in Chicago you need to
adhere to the highest rate. So research all payroll rules that apply to your
location at the beginning of the process. When reviewing the rules, don’t
forget that different rules often apply depending on the number of employees in
- Review and update job
descriptions. Take some time to review
key jobs and update them as appropriate. With new positions, note the exact
tasks and responsibilities you envision for the role. Then, think about the type
of person that will succeed performing these responsibilities. Once you have a
clear picture of who you are looking for, you can begin to build a detailed job
description and narrow in on a specific salary range.
- Establish value ranges and apply them. Value is key when determining the perfect salary amount. Define the range of value for the position and then apply that valuation to the current person’s performance within the defined pay range. Use websites and recruiters to establish the correct range of pay, then apply experience and employee performance to obtain a potential new salary amount. Remember, size of company, location and competitiveness of the job market are all factors to consider.
- Factor in company benefits. A strong suite of employee benefits is a powerful tool to couple with a competitive salary. Don’t be afraid to communicate their value to prospective and current employees (they help with retention, too!). According to Glassdoor, health and dental insurance are the most important, but flexibility is close behind – over 80 percent of job seekers take flexible hours, vacation time and work-from-home options into consideration before accepting a position.
Finding the right salary can be
tricky, but with some preparation and research, you can find the balance that
satisfies the needs of your business and your employees.
As always, should you have any questions or
concerns regarding your tax situation please feel free to call.