Hiring new employees to add to your company, whether it’s because you’ve experienced growth or because you’re ready to take things in a new direction, is a big step. At this point, you’re probably concerned about what these new employees will do, where they’ll fit in, and how they’ll contribute to your operations. However, there’s one big thing you need to think about ï what you’re going to pay your new hires. Fortunately, when it comes to benchmarking 101, there are a few factors to consider that can help you put a price on talent.
Write it Out
If you don’t know exactly what you’re looking for, you’re going to have a hard time finding it. For this reason, one of the best pieces of benchmarking 101 advice out there is to write out a job description for whatever positions you need to hire for. To do this, solidify the names of the positions and be extremely specific about the range of duties and responsibilities for each job. If you’re having a tough time figuring out exactly how to do this, go online and look at similar postings other organizations have put together for their open positions. Then, try to align your job descriptions and titles to match what the other organizations are advertising for. Not only will this help you as you try to figure out salaries, but it will also help job seekers find your postings when they start looking for jobs.
Size Up Your Competition
When you hear the word ïcompetition,ï you probably think about that business down the street that’s trying to steal all your clients. However, in the world of benchmarking 101, you need to take things a step further and look at the bigger picture. This means considering your industry as a whole and how the general market is paying people to do the jobs you’re hiring for. For example, if you’re looking for a new social media manager, you can start off this process by doing a quick internet search and finding job postings that are hiring for this same position. Then, narrow things down and look for companies hiring for this position in your region or city. Although you don’t have to pay the same as every other company out there, you need to be competitive in terms of what you’re going to pay whoever fills your open job. You might also want to check out local guides or salary surveys that cover the job market in your area. Additionally, don’t be afraid to reach out to other business owners in the area who might have a similar position held by someone at their organization.
Location, Location, Location
While taking things outside of your local area to find out what other employers are paying their team members is a good place to start, you also need to take into account where your business is located. Take a few minutes and use a cost of living calculator to find out exactly what it costs to live in your local area. Then, base this figure off of what might be a fair salary to pay someone who came to work for you, while also taking into account the information you collected by comparing salaries at other businesses.
One thing you definitely need to take out of benchmarking 101 is that when it comes to figuring out salaries for your employees, the size of your company does matter. Generally speaking, the larger your business is, the more you can pay employees because you have a bigger budget for labor. That being said, if you run a smaller company, but you want to attract the type of talent that’s found at larger organizations, you’re going to have to adjust for this. For instance, if you want your company to compete with bigger companies in terms of its web design, you’re going to want to hire content producers, graphic designers, and a web development team that can get you impressive results.
In the End, it’s Complicated
When all things are said and done, coming up with a salary for your new hires is hard since so many factors can play into what you pay them. Out of respect for the people you hire, and for the sake of avoiding legal problems, take what you’ve learned from benchmarking 101, apply it, and make sure you put in as much time as you can researching your market. Want to learn more? Check out the other great resources Mighty Recruiter has to offer for employers looking to enhance their business and find all-star hires.