Tuesday, February 19, 2008

You need staff. How much do you pay?

You have finally decided to get some help. This is an important turning point for any new business. The next challenge: Defining what needs to be done and how much do you pay?

A common question I am asked by employers is ‘How much should I be paying for this role?’ Obviously there are a few factors at play here. For any small to medium sized business, the budget can be tight. But to grow (or to keep sane), you need help.

To understand how much you need to pay, you will need to do some homework. What are the tasks and responsibilities of this role? What is the job title? What level of experience and skills do you require? Do you want someone to hit the ground running or are you happy to provide training? How many hours do you think that you really need? Can you offer flexible hours? Do you need someone on an ongoing basis or will it be a casual arrangement? This information will help you to define your requirements and create the job advertisement.

Next, you should then look at other job advertisements and see what the going rate is. You may wish to consider paying per hour or offer a salary. Talk to your accountant about which option is more beneficial for your business. If the salary or hourly rate is more expensive than you budgeted for, you may want to revise the role or take on an employee for one day rather than two days for example.

If you are specific in your job advertisement with regard to skills and experience required, you can benchmark your applicants against the criteria to locate the quality applicants.

For more information on pay, agreements, working conditions and workplace issues, visit www.workplace.gov.au.

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