How to Set Salaries

January 7, 2016

Setting salaries for your staff is always a tricky thing to do. It's especially hard if you've never done it before, because you probably don't even know where to start. On the one hand, you want to pay enough to get the best possible talent. On the other hand, you don't want to overpay.

Here's a quick summary to help you set salaries for all your staff:

  • Set your upper salary limit by what a particular job is worth to you.
  • Know the market to determine the least you'll pay.
  • Match jobs whose value comes with hours to hourly pay.
  • Match jobs whose value comes in insight or skill to salaried pay.
  • Match jobs whose value is revenue to commissions.
  • Use bonuses to align everyone around company or product or division goals.
  • Customize the deal for experts and upper managers.
  • Sometimes you can trade cash salary for intangibles or services.

View the full this article by Entrepreneur for more information on how to set salaries.

Through the Michigan Chamber’s partnership with WageAccess, you can gain access to valuable Compensation, Benefits, Pay Practices and Incentive Pay information and trends in the State of Michigan, and across the United States. Learn more about discounts offered to Chamber members.