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Employee Hiring and Compensation


     

 
  Make Every Dollar Count

Salaries are a tough expense for most businesses. You want to hold them down but reining them in too tightly doesn't always work well. Good employees can find work elsewhere and replacing them can cost a bundle.

So, if you're in a spot where every salary dollar counts, here are eight ideas for getting the biggest bang for your buck.

  Do research. Make sure your salaries are in the average range. If you pay too little, your recruitment and training costs will be out of line because you won't be able to hold onto people. It doesn't pay to constantly lose people because they can make $2,000 more down the street.

Salary.com offers a free search engine that allows employers and employees to research compensation information compiled from various industry surveys. Other resources include the federal government and trade organizations within your industry.

 Give bonuses, not large increases. That way, the base salary stays the same, but the total package is competitive. If your company does well, the staff does well too a concept that seems fair to employees.

 Be flexible. Big corporations may not be able to write their policies around their employees' needs, but smaller firms can afford to accommodate special situations. Don't worry too much about setting precedents. Employees will understand when you cut a special deal as long as a similar deal is available if they need it. In return for flexibility, many employees may be willing to accept cash compensation that is less than they could get someplace else.

Remember that most people work not only because they need to earn money, but because they take satisfaction from making a contribution. Although you don't want to be condescending or phony, be generous with encouragement and praise it doesn't cost anything.

 Be willing to hire smart, less experienced people who need some training, even if you think they won't stay around long. It's better to have passing brilliance than permanent mediocrity.

 Get rid of any caps in commission-based jobs. Everybody wins if you set up a system so that the more people sell, the more money they make.

 Consider outsourcing. But remember that outsourcing can reduce commitment, consistency and control. Make sure you're not giving up more than you should.

 Move things around. Allocate resources to ensure that every employee's talents and abilities are being used to the maximum. Many people are mission driven. If they feel they are indispensable, they'll behave that way.

 Share the risk. Talk to employees often and honestly. Let them know when the company is doing well and when things are going badly. Employees who understand the risks are more likely to share their ideas for solutions. They'll be willing to ride out the bad times because they feel part of the operation.

Free Interns may make good business sense! With college students looking for internships, there might be a pool of eager and talented people who are willing to work at your company for free or minimum wage at least for a while.These arrangements can benefit both sides: Your company gets help and the interns learn valuable new skills. But make sure you comply with all the federal and state laws relating to interns. In some cases, companies decide the free lunch isn't worth it and opt to pay interns the minimum wage to avoid legal liability.

Hiring Foreign-Born Employees -hiring foreign-born employees can present some complex issues, particularly in the wake of the September 11 terrorist attacks, and can result in complaints to the Equal Employment Opportunity Commission (EEOC) of illegal bias. In fact, EEOC and state officials say many workplace discrimination cases go unreported and they are urging victims to come forward.

Communicating with Absent and Disabled Employees - Employees returning to their jobs after a long absence can face a series of challenges that require good management. In the end, handling returning employees in a sensitive manner will pay off in increased office harmony and ultimately, higher productivity. Click here to learn how to handle the situation.

Teen Employees Cause Problems - The approaching summer means teenage employment will rise at many workplaces. More working teenagers means an increase in potential risks for employers...especially the risk of illegal harassment and other illegal treatment, If your organization employs teenagers, don't cut corners when complying with employee-protection laws just because the employees are young.

Office Romances - Employers need Guidlines - Studies show that a fair number of people meet on the job, enter into relationships and even marriage while continuing to work together. In many cases, these relationships are well known and accepted. How should the Employer deal with these employee relationships?

Required Health Improvement Programs - The high cost of health insurance for employers is driving more organizations to set up wellness programs that encourage healthier lifestyles. Some employers even mandate that employees participate and meet certain goals.

"Exploding" Sign-On Bonuses. There are pros and cons to "signing bonuses" when your company is trying to lure top applicants, but they can work in your favor if you use them effectively. For example, giving a hot prospect an "exploding offer."

Virtualex.com Ronald J. Cappuccio, J.D., LL.M.(Tax) 1800 Chapel Avenue West Suite 128 Cherry Hill, NJ 08002 Phone:(856) 665-2121      Fax: (856) 665-9005 Email: ron@taxesq.com

 
 
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