Paying employees too little or too much can affect your organization’s ability to attract qualified talent and retain valuable employees. Determining the proper pay scale is essential for productivity, and it’s also necessary for cost control. Setting the pay scale too low causes recruiting challenges, and setting the scale too high adds costs to replace employees. If you have the luxury of rewarding employees with high wages, also be prepared to provide a comparable benefits package. Job seekers tend to value benefits over salary when they weigh the pros and cons of joining a new company.
Review your job descriptions for accuracy and completeness. Compare them to advertised job postings for similar positions to ensure they contain comparable duties, skills and qualifications. Search similar positions and salary levels on job boards and career pages for professional associations.