As an Employer, are you over paying or underpaying?

Gone are the days when pay wasn’t discussed at interviews, today it has become critical to have a conversation about a candidates expected pay. Salary transparency has become more important than the job to be done.

Organisations that are more transparent about their pay practices often have higher degrees of trust in leadership.
Many employers ask for a job candidate’s salary history in an effort to level their pay.

The recent trends has shown candidates exaggerating their pay or share some but not all of the details of their compensation just to get more from a potential employer. This has also resulted in many small businesses not meeting up with the salary promises made to employees.

As an employer. It’s important to stick to an industry or state salary structure to avoid over promising and under delivering practices been experienced today!

In recent times, over 40% of candidates who attended a job interview mentioned that they were promised an X amount of salary but got less than what was expected at the end of the month, infact over 15% says that they have been owed for 3 months or more due to the inability of the employer to pay. 

The question is are you overpaying, when the business can’t afford it? Or do you simply think that the employees haven’t worked enough?

Now, whichever may be your case, Ensure you have checked thoroughly what your business can afford to pay employees on a monthly basis and communicate that from the onset, it’s okay if the Good candidate rejects your job offer if it’s less than their expected salary. it is better to uphold your brand integrity.

If you think the employee hasn’t worked enough then it’s your fault. You must provide sufficient work to be done by the employee, if you think it’s less work for them,  you may consider a part time role, virtual or freelance services so as to pay less. If the employee is negligent to his duties, adds no value or does not meet his set targets after several discussions and warnings well documented, you may consider dismissing such employee. 

Now that you know what to do, wages are exchange for labour therefore do not see paying employees salary as a favour, rather see it as an exchange for their time, intellectual property, support etc.

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6 thoughts on “As an Employer, are you over paying or underpaying?”

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