How to Determine the Salary Scale for Your Employees

To retain valuable employees and attract qualified prospects, you need to ensure that your organization is neither paying employees too much or too little. Determining the best salary scale for your employees is key to ensuring not only cost-control but also product-control. How to determine the salary range of employees is, however, quite simple if you follow the tips below.

1. Review Your Job Description

Ensure that you compare your job positions and description to other job postings advertised by different organizations. The job positions should contain similar skills, duties, and qualifications. A good place to do online research on job descriptions, requirements, and obligations is

The next step is creating a detailed description of the job by outlining all the expected responsibilities and duties, time commitment, and formal job title. You now need to think of how vital the position is to your company and the amount of effort and time it takes to complete the daily requirements. Ask yourself, what level of certification and experience does it require? What would you consider to be a fair wage if you could do it yourself? Doing this will help you get a rough idea of how much you would need to pay your employee.

2. Research Wages

Do extensive research to determine the median salary for the given position across different organizations. You’ll be able to easily forecast the amount of money an employee would expect to earn in that position while working for you. Doing in-depth research will also help you determine whether your business can afford to sustain the position you’re seeking comfortably. There are various websites that you could use to research detailed information about wages for different jobs.

3. Determine a Minimum and Maximum

Your business needs to comfortably support the salaries of your employees to turn a profit. It is critical that you don’t pay more than you can manage to maintain. You need to determine the minimum and maximum wage for the particular position you want to fill. Always start with the minimum salary you can offer and increase it slowly to the maximum amount, to act as an incentive to your employee.

4. Decide Your Payment Method

Decide whether you will be paying your employees hourly, weekly or monthly according to your capabilities and type of organization. It is also critical that you come up with a way of rewarding your employees to keep them motivated. You could also include the standard employee perks like bonuses, commission, health insurance, stock options, and reduced gym membership.

5. Allow Room For Negotiation

Always expect your employees to inquire about their wages while trying to negotiate a sweeter deal. One quality of professional employees who can offer quality services to your organization is the ability to assert their worth and negotiate a better salary respectfully. Being flexible and open to negotiations will inspire employee loyalty and maximum performance.


Inasmuch as you need to consider how to cut cost in your organization, you need motivated employees for increased productivity. It is essential that you pay them an average and fair salary in relation to their job requirements and duties.




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