When starting a small business, it's very important to have an equitable pay grade scale for employees, as is explained in this 'Intuit' infographic.
Employees are known to compare their salary with other co-workers, and if working for a small firm with a handful of employees, any pay differences can be blatantly obvious, and lead to problems. The first thing to do when determining a pay scale is choosing what the measures will be. Is pay going to be based on skills, competencies, variables or broadband? Once that is determined, a draft should be laid out that establishes ranges, and targets that have to be met by employees in order to qualify within a pay range.
It is also important to ensure that employees have career advancement opportunities, and pay raises for high performing employees.
Pay Grade Scaling Infographics
The 'Intuit' Chart Shows Small Businesses How to Establish Salaries
Trend Themes
1. Equitable Pay Grade Scaling - Explore innovative methods to establish fair and transparent pay scales to avoid employee dissatisfaction and conflicts.
2. Salary Comparison Prevention - Develop strategies to address employee salary comparison issues by implementing standardized pay measures and ranges.
3. Career Advancement and Pay Raises - Leverage structured career advancement opportunities and performance-based pay raises to motivate and retain high-performing employees.
Industry Implications
1. Human Resources - Introduce disruptive HR solutions that revolutionize pay scale establishment and career advancement processes.
2. Consulting - Offer consulting services to small businesses for designing equitable pay grade scaling strategies and frameworks.
3. Small Business Management - Provide innovative tools and resources for small business owners to navigate pay grade scaling challenges and optimize employee satisfaction.