In this episode, I talk about how to determine appropriate pay structures for your team members, and how it can impact your team dynamics and business outcomes. I explore some of the intricacies of underpaying and overpaying for a role, and explain why it is important to align pay rates with market research, financial feasibility, and the role's inherent value within your business. 

 

From assessing hiring challenges to considering future potential and seeking objective advice, I share how to navigate pay decisions in your business, and how to apply a balanced approach that will help to foster growth, profitability, and employee satisfaction in your business.

 

Highlights

• The 4 main areas to consider when choosing a salary for a role in your business. 
• How paying team members appropriately can positively impact team dynamics and your business performance.
• Why market research is crucial to understand current pay rates for similar roles.
• When to seek objective advice to refine pay decisions.
• Why it's important to identify rare or specialised skill sets in the market. 
• Why a pay structure should align with your business profitability and cash flow to ensure sustainability.
• Why pay considerations should extend beyond market rates to include the importance of the role within the business.

 

Chapters

00:00  The Importance of Getting Pay Right

01:25  Pay Does Not Equal Happiness or Productivity

06:40  Consider Finances and Profitability

09:01  The Hiring Wobbles: Importance of Knowing Your Numbers

12:30  Profitable Growth and Hiring Order

15:49  Additional Factors to Consider: Difficulty of Hiring and Value of the Role

23:51  The Role of Intuition and Feeling

26:45 Conclusion and Invitation for Further Assistance