Maintaining A Competitive Salary For Your Employees

Two focuses of my blog are Workplace Discussions and Organizational/Management Discussions. In order to retain your employees, you must think about their happiness particularly in way of their salaries. The following contributed post is entitled, Maintaining A Competitive Salary For Your Employees.

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As an HR professional or an employer, you need to know that a fair and competitive salary plays a significant role in your team’s happiness. Salary is a substantial factor in job satisfaction. It makes no doubt that if the company fails to meet an employee’s salary expectations, they may be tempted to look elsewhere for another job.

Realistically, employees approach the job market with a variety of dreams, aspirations, and desires, including professional growth, working for a meaningful cause, and building strong connections in the workplace. But a reliable wage that enables them to cover their expenses remains a priority. Ultimately, job satisfaction is a crucial factor of self-growth and pride. Yet, it doesn’t pay the bills. A salary does. Is it to say that companies should ignore the impact of business culture, work environment, and teambuilding? Absolutely not. But your top priority as an employer is to ensure you can pay your employees a decent, market-competitive salary on time. Unfortunately, managing salary payments is no easy task for small businesses.

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Maintain your cash flow

Cash flow refers to the real or virtual amount of money transferred into and out of the company. From a business perspective, cash flow is constantly moving and can be positive or negative. Negative cash flow means that the business transfers more money outside than it receives. This phenomenon could be linked to unpaid client invoices, unexpected or poorly planned expenses, etc. Yet, negative cash flow makes it tricky to face operating costs, such as paying salaries. Negative cash flow can be temporary and doesn’t necessarily affect the business profitability. Yet, employees need to be paid on time every month, whether it suits your cash flow or not. That’s why it’s essential for small companies to consider business banking solutions such as loans to face operating costs during a period of negative cash flow.

Automate you payrolls

Manual payroll processes are time-consuming. They are prone to mishaps, especially when the accounting team is unavailable or training new employees. Besides, they are also reliant on the company’s internal IT system. If a virus or an IT update affects the accounting system, employees may not be able to receive their salaries on time. Understandably, a cloud payroll process could save time and a lot of hassle by addressing the core issues. Cloud technology will ensure that your payroll system stays safe at all times, even if your internal infrastructure is affected. Additionally, you can also seek automated solutions to manage payments without delay or errors.

Meeting your salary obligations as an employer is a no-brainer. Employees may choose to work with you for a variety of reasons, and many will see past salary mishaps. However, at the end of the day, companies have to be realistic. Regardless of passion, expertise, or personality, people work first and foremost for money. It is the foundation of the work contract. Failing to pay correctly or on time affects the work relationship and can have dramatic consequences for employees.

Nevertheless, it is fair to say that meeting their salary expectations will not reduce the employee turnover rate if you face a high volume of resignations. People work for money. Yet, they don’t stay with a business for money only. It is a subtle but crucial difference.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.