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Salary Pay Calculator: How to Find the Right Range to Pay Employees

Salary Pay Calculator: How to Find the Right Range to Pay Employees

If you're operating like most organizations, you're talking incorrectly about employee compensation. In the latest episode of HR Party of One, I covered how you can use target compensation to find the right salary range to pay employees, no matter the position.

 

The Best Way to Calculate (and Talk About) Employee Pay

Most companies talk about pay in one of four different ways.

  1. First, some employers choose not to talk about it at all.
  2. Different organizations will promise the moon but never deliver.
  3. Others undershoot how much employees can make in a given role.
  4. Finally, some employers will provide salary ranges that can vary pretty significantly. 

There's a better way. It's called target compensation. This much more transparent approach to wages determines what an organization believes, in good faith, a reasonably good performer will earn in a given role. It includes the base pay for the position as well as additional forms of compensation, including variable or incentive-based pay, such as bonuses, overtime, commissions, and more.

Watch our full breakdown of the best way to talk about employee pay in this video:

If you’d like to learn more about this and other industry updates, I recommend that you check out the BerniePortal blog.

 

Additional Payroll and Wage Resources

Much of your long-term retention and recruiting efforts begin with good employee benefits. Pay is included in that equation. Check out a handful of our top payroll and wage resources that we've covered at BerniePortal: 

  1. Do Employees Get Paid for Onboarding?
  2. Payroll Calendar: 27 Possible Biweekly Pay Periods in 2021
  3. Overtime FAQ: Common OT Questions and Answers Employers Need to Know
  4. 5 Factors that Affect Employee Retention—and How to Improve Each

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