Currently Browsing: Business Formation

How to Determine Employee Salaries

One of the most challenging tasks of starting a new business is figuring out how much to pay your employees. You want to pay highly enough to attract and retain good talent, but you don’t want to pay too much and hurt your business’ sustainability. At the same time, you have to remain compliant with labor and wage laws in your area.

One of the best ways to determine what to pay an employee is to look at the wages and salaries other people pay for similar work. There are a lot of factors to consider here, including where your business is located and what your local minimum wage is. Looking at wage data for a state with different wage and labor laws might skew your analysis on what you should pay. The Department of Labor keeps a database of wage data for various areas of the country.

Factor in a potential hire’s education and experience when making a salary offer. Someone with more education and experience will expect to make more than someone who is lacking in those categories. You may be tempted to start a hyper-qualified employee at the top of your pay scale, but that is a mistake. You should take the employee’s future into account. Eventually, that employee will have earned a raise that will be difficult to give because you’re already paying him or her every dime you can afford to. So, leave enough room for salaries to grow. You should also take the benefits and perks your company offers into account when you’re determining salaries.

With proper planning and research, you’ll be able to pay your employees a fair wage that will make them happy and loyal.

Employee Manual: Win Your Employees’ Confidence without Compromising Company Interests

When starting a company you will need to sit down and plan out all things really well, especially all the legal aspects that will affect putting up and running your business plus strategies on how your business will operate and earn profits. You will also need to address issues, such as contracts, company debts, taxes and liabilities and other business-related legal matters. Since all these require a thorough understanding of business law, it would be wise of your firm to consult with a business attorney who has expertise in the field.

Among the long list of issues requiring comprehensive knowledge in business law is employment. Employment is a particularly essential issue when outlining your general plans for a business formation, for human resource is a major element in the success or downfall of your business. Thus, to be assured of consistent company growth, all legal issues involving employee-employer relationship, which starts with the stating of the credentials desired of employees through the actual hiring process, the implementation of the employee manual and development of a system that will ensure clear communication processes and a healthy working environment, must be addressed effectively.

Probably one specific element that will address all such issues is your company’s employment manual as it will speak of your employees’ duties, rights and privileges; what the company expects from them and what they can expect from the company in return. It will also contain company stipulations on employee dress codes, disciplinary procedures, company policies on promotion, compensation plans, employee confidentiality, non-compete clauses and employment manual revisions. Your expert legal adviser can help you draft all these and come up with a manual that will really benefit employees, but without compromising your company’s interests. Other issues that may be provided in the manual are rules on employee entry and exit, issues on discrimination and harassment, employee contracts and employment law litigation.