Monday, November 28, 2011

 How much should I pay my employees……

Written by Nisreen Qaqish

                                                                                                             It is a real hard question to answer, however I do believe that in the lack of a clear benchmark for each job and industry in Jordan, companies need to develop a salary administration policy that is fair to both employees and company. And will lead to attract and retain the employees within the company, therefore when developing this policy I would recommend taking a closer look at the following:

  1-Company Vision and Strategy:
      What is your company vision and strategy, how do you want to achieve it, what is the manpower caliber that will be needed and what is the manpower budget (Salaries, benefits i.e. insurance, social security) that you will need to implement your business plan

        2- Salary Structure Philosophy
What is the salary structure philosophy that is aligned with the overall strategy?
Are you looking to have a base pay and it will be tied to the variable pay i.e. bonus, incentives…     If you are a startup company you might think to have base salary and to focus on variable pay in order to make more business, however if you are a big corporate and looking for more loyal employees then you might think of having profit share, bonuses, or stock share that is linked with performanc

 3-The talent needed and the uniqueness of the job
What type of talent do you need, what is their experience, and qualifications and how much do you need to offer them

   4-The Market  
      How much your direct and indirect competitors are paying to the same type of the caliber you want to hire, where do you want to place yourself in comparison to your competitors 

       5-Salary Ranges
      Upon the completion of the above try to develop the salary ranges for job families and level that is based on what was mentioned above

Finally review your policy at least once per year and do updates when needed as you do not want your policy to be outdated and if you have not started yet please do not hesitate to contact us and we will be more than glade to help you.