Monday, December 14, 2020
If you are new to owning a business, you likely have a host of questions such as “How much should I pay a new hire?” or “What is a fair wage in Deerfield Beach?” Wonder no more! Accually, a business accounting company, specializes in payroll solutions for all your bookkeeping questions. Don’t just throw up your hands and hire the first result on a hasty “bookkeepers near me” search. Let our team of professionals be the Accounting Ally you need for all your essential payroll decisions.
Find Payroll Solutions To Your Compensation Problems
Talking about wage compensation can get uncomfortable. You want your employees to be valued and fairly rewarded for their work; however, you may regret setting wages too high and risking future pay cuts or – worse – layoffs. So how should you set a fair, realistic wage? Don’t just search “bookkeepers near me.” First, research the minimum wage for your state. Although the federal wage at the time of this writing begins at $7.25 per hour, most states have established a distinct minimum wage. Be aware that some employees may be exempt from the minimum wage requirement: those who receive tips, study full-time, or demonstrate disabilities. But tread carefully; underpaying your employees can have serious consequences, not only for them but also for your business. Keep your company legal and pay the minimum wage, if not a little higher.
Contextualize Your Compensation For Industry And Job Description
Once you have pinpointed your state’s requirements, evaluate how that number fits within the range of salaries in your industry. Perhaps the minimum wage is a suitable starting pay for entry-level jobs in the retail industry, but skilled industries such as medicine and engineering will require a much higher rate. To determine your industry’s average rates, do a quick market search online. Always contextualize the market of your industry within the market of the area in which you live. In some states, base pay varies from city to state due to discrepancies in the cost of living. Finally, choose a pay rate that fairly reflects the job description. Spare yourself the wasted time of mismatched expectations from your applicants, and keep your pay rate average to the market.
Give Yourself A Range For Negotiation
When setting your pay rate, it’s smart to give a range. Flexibility in how much you’re willing to pay can help you negotiate with employees in the future when they ask for a raise. If you don’t plan for an increase, you won’t retain your employees. Expect to raise pay with performance, seniority, and rising living expenses. Finally, don’t underestimate the value of generous benefits, which can placate employees looking for a higher rate.
Do you still feel overwhelmed? Wishing you had a CFO? Let Accually be your chief financial officer so that you don’t have to search for “bookkeepers near me” anytime you need quick payroll solutions. We are happy to take the load off your shoulders so that your Deerfield Beach business can continue to thrive. Contact us today!
Questions? Get in touch with us!