Some employers look at salary surveys to see what other employers are paying. Once they access the market, they establish their wages and salaries somewhere equal to the market data based on their circumstances and the total package.
While you are crunching the numbers, things to consider are:
- What is the job (analyze and describe each job within the organization)
- Evaluate the job (what is the job worth )
- How is the job priced in the industry (what is the average salary range)
- Find a well-rounded benefits package that suits your industry: Benefits packages are not all the same and a substandard plan can cost you in talent.
- Encourage consumerism for health care: The National Center for Policy Analysis defines consumer accounts as a health plan in which individuals have a personal health account, such as a health savings account (HSA) or a health reimbursement arrangement (HRA), from which they pay medical expenses directly.
- Manage costs with technology: In a study on businesses that use human resources technology, the Gantry Group found that employees and managers saw cost savings through the use of online tools such as payroll entry and benefits enrollment.
- Create a healthy and stress-free environment: Benefits costs go up when employees use their benefits and we know stress causes a myriad of health related issues. You can form a company sports team for a little friendly competition and exercise. How about "bring your pet to work" day; studies show that pets reduce blood pressure and overall stress. There are many ways to help reduce employee stress; you just have to find the right one for your company.
The cost to you, the business owner
According to the U.S. Bureau of Labor Statistics, private industry employers spent on average of $31.32 per hour worked for total employee compensation in December 2014. Employee wages and salaries averaged about $21.72 an hour and accounted for 69.4 percent of the costs. Benefits averaged $9.60 and accounted for the remaining 30.6 percent. The study also showed that total employer compensation costs for civilian workers, which include private industry and state and local government workers, averaged $33.13 per hour worked in December 2014.
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