These days salaries of employees can’t simply be changed when an employer feels like doing so. There are laws which protect employees against wrongful acts against their salary. All of which include unlawfully withholding pay, paying someone below the average wage and not paying someone according to their hours worked. With the implementation of law comes a series of questions an employee may ask their employer. In the interest of your business read up the latest guidelines of corporate finance and employee wages.
Are you underpaying an employee?
There are many reasons why an employee may decide to leave the company. One of the most common reasons is that employees feel they are being underpaid for the amount of work they do. Some employees don’t feel it’s necessary to speak up. They simply assume their employer ought to know what is right. If a person’s financial needs aren’t met by their company, they will soon seek out a new place of work which will meet their needs. Be sure to recognise you employee’s skills and experience in order to adequately pay them a fair wage.
Be wary of overpaying an employee
Employees who are paid more than their worth, could start to feel a sense of entitlement. The last thing any employer wants is for an employee to start slacking. They might not put in the extra effort because they’re already receiving a nifty reward. All employees need to have a goal they work towards. Not only will it increase work productivity, but employees will feel a sense of accomplishment for their efforts.
How to set employee salaries
Before making a decision about the salary of an employee, do the necessary research about various wage scales in their field. Once you’ve compared the current market rate, you will be able to make a sound financial decision regarding the salary of an employee and your company. You will then be sure not overpay or underpay an employee. To avoid any labour law disputes, be sure to follow up on South African Labour Law to keep track of any amendments. Evaluate your employee and give them an increase based on their performance level, as well as annually adjusting their salary, if possible.