When setting salaries you want to be fair, offer enough to get good talent but you don't want to over-pay either. To determine a fair salary you will have to do a little research to see what the going rate is for each position. Add all the other factors in, such as room for pay increases, before setting salaries.
Instructions
1. Know the market salary rate. Download a free salary guide booklet; this will give you an idea of what each position is paying. These guides will show the starting and ending salary for these positions and the percentage of increase expected in the next year or two. You will want to fall somewhere within those guidelines when setting salaries (see Resources below).
2. Check the classified ads. Look at jobs in these fields with similar tasks and responsibilities. Many times these ads will include a starting salary range.
3. Look online at Online.wsj.com and Acinet.org. These sites provide additional information based on specific criteria, such as the degree of responsibility, experience, size of company and the location (see Resources below).
4. Compare apples to apples. If your business is a non-profit organization, look at other non-profit organizations for salary comparisons. For-profit companies will pay more and possibly as much as double depending on the industry and the position.
5. Consider what you can afford to pay for each position. Compensation is not just in the form of money. You might consider including a better vacation package, stock options, bonuses, laptop or flexible hours. Rewards come in many forms.
