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Hiring and Firing
Compensation Considerations
What positions are needed on the team and what will they be paid? TIP: To get the most bang for your buck, compensation, pay and your company's budget should be addressed before you hire.
Here is a list of key points you should consider before hiring. (Already hiring? No problem, we are here to help!)
- What is your compensation philosophy? If you don't have one, it's time to strategize.
- Do your compensation offerings support your business strategies?
- Are you responsive to the market in base pay, bonuses and stock?
- Is your compensation plan comprehensive and flexible?
- Does your compensation plan solicit optimum performance from employees at all levels?
- Don't forget about a plan to administrate compensation!
Compensation takes two forms, direct and indirect.
- Direct compensation (wages and salaries)
- Paid on a regular basis (monthly, biweekly or weekly)
- And, paid on the basis of time (by the hour, day, week or month)…
- Or, paid the basis of output (an incentive plan)
Legal issues include:
The above links are for overview of legal issues. For specific information, check out State regulations
Indirect compensation (fringe benefits)
Fringe benefits are an important part of the overall compensation for most small employers
The profitability of small employers is one of the primary determinants of what benefits (including fringe benefits) are offered by the employer.
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