You’re on the threshold of a promising business venture and things are on a roll. One of the most important details that one must consider is the number of employees he/she will be hiring and what is the remuneration that must be paid to them. Salaries are an important business expense and must be taken into careful consideration.
Minimum wage in common parlance is the minimum that is permissible to be paid by the labor laws governing the region. It is stipulated by a legislation or special agreement and paying below the standard price floor set is illegal and liable for the penalty.
Check for the legally stipulated payment in your region of business and the general price floor pertaining to your line of business. The minimum remuneration to be paid usually classifies employees into two categories: those who must be compensated on an hourly basis and are covered by the law and those who are exempted because they are paid a salary for a week or a full month. The federal and the state legislations need to be considered before you determine the amount.
To get talented and skilled people to do the job, you need to remunerate them fairly as per the market trends. Pay as per the job demands and how much their labor is important for your business. It’s important to set a top ceiling amount that you’re willing to pay for each position in the initial stages; look at employee salary as an expense and an investment which must yield good returns and use the current market rates as a benchmark to decide on what is important and whether you have lucrative alternatives.
How you remunerate is also very important. There are those that need to be paid hourly, weekly or for the full month or on a commission basis entirely depends on your line of business. Be prepared to be flexible and research well; Deciding on the salaries maybe a little tricky but if you are aware of the ongoing trends and the labor laws and can negotiate well, attracting good talent is completely possible.