As an employer, it is your duty to provide a safe working environment, and handling employee issues is part and parcel of being an employer. It can be a challenge to stay on top of all your responsibilities. With that in mind, here are some employee compensation issues, along with ways to resolve them.
Internal Equity Compensation
When an employee feels that they are being underpaid – when another employee earns more, yet qualifications and job experience are similar – they can make a claim for additional compensation. If you forge a working alliance with a top small business human resources consulting service, you have access to their legal team and they can advise you regarding your response to such a claim. It is perfectly understandable for an employee to feel undervalued if an employee of similar ability is earning more than they are. If you want to ensure that you have a balanced compensation package, talk to a leading HR agency and let them review your pay scales.
External Equity Compensation
This relates to the pay and incentives of other companies in your industry; if your package offers less than similar employers, your worker could file a claim for extra pay or privileges. It is a good idea to compare your compensation packages with other companies in your industry, which could avoid any issues. If you enlist the services of a leading HR agency, they can review all your pay scales and make sure that your compensation packages are in line with other companies. It isn’t difficult to find out what your competitors are paying and this will tell you where your compensation stands in the field.
Executive Compensation
Executive positions usually offer a wide range of perks and incentives, which should be comparable with other companies in your sector. If, for example, an executive points out that another employer offers a lot more in terms of perks and salary, this could cause an internal conflict. It is crucial that your team leaders are highly motivated and that means a compensation package that is a reflection of the position. The last thing you need is to lose a key manager because of an inferior compensation package, so do make sure that you are competitive.
Geographical Location
The actual geographical location can have an impact of compensation packages. For example, working at the London office should offer a slightly higher compensation package than for employees who are working at the north of England office, due to the higher cost of living. Make sure that you take this into account when setting salaries, as getting this wrong could lead to issues further down the road.
Salary Growth
Of course, employee salaries should be raised periodically, in line with government guidelines. People work hard and if they are not suitably compensated, this will impact their performance. Most businesses promote from within and that should include salary increases when employees are promoted.
Most companies do not have an HR department, rather they outsource all their HR needs to a leading HR agency – professionals who can tailor their services to suit the client. A happy workforce is a productive one and with a leading HR agency in your team, every aspect of HR will be covered by the professionals.
Your workforce is the most valuable asset of your business and therefore you should outsource all HR needs to an HR agency, as they can ensure that your employees are motivated and ready to go that extra mile.