Wages & Benchmarking
Eight factors can influence the determination of wage rates your business is prepared to pay to an employee:
1) Ability to Pay
2) Demand and Supply
3) Prevailing Market Rates
4) Cost of Living
5) Bargaining of Trade Unions
7) Government Regulations
8) Cost of Training.
The wage payment is an important factor influencing employee / management relations. Workers are concerned as the renumeration they receive can effect their standard of living. Management, generally, do not come forward to pay higher wages because cost of production will go up and profits will decrease to an extent.
Determine if the wage you are offering is fair and meets legislative requirements by benchmarking the wages for each category of employment in your business (modern award rate (where applicable); salary guides and the market rate (wages for jobs advertised)).
As a business, you might decide to pay wages at the maximum or mid-point or minimum of the market place. By benchmarking wages for each employment category within your business, you can be certain you are meeting the market place and legislative requirements.
If you would like to learn more about wages and bench marking - contact Akyra for an obligation free conversation.