For a small business, it is incredibly important to ensure that the financial plan, banking and other vital fiscal elements are in order. Otherwise, it may be tough to create a strong, sustainable company.
One crucial factor is fair wages. As a business owner, you must decide how much to pay your employees, and that answer can prove tricky. While it often depends on a number of factors, including your past history, the job and your potential for future growth, getting the answer right can be a serious boost to your enterprise and the economy. Recently, the discussion has heated up surrounding minimum wage, and a survey of many small business owners has found that most are in favor of a raise.
Higher wages could improve spending
The survey, conducted by Lake Research Partners and organized by the American Sustainable Business Council and Business for a Fair Minimum Wage, noted that the topic of minimum wage wasn't very divided along party lines when it comes to small business owners.
In fact, 61 percent support an increase to $10.10 across the country, with future adjustments made as the cost of living ticks up. The belief is that a higher wage would increase consumer spending, decrease employee turnover and boost productivity, among other factors. In addition, 56 percent of the respondents feel that a higher wage would help the national economy as well. Overall, it appears that support is on the way up.
How to determine a fair wage
As a small business owner, you may want to look over your financial plan and business banking numbers to determine if your wages are in line with today's economy. Finding places to increase salaries could keep your employees motivated.
In order to do that, Microsoft Business explained that you should create clear job descriptions. Once you have a title, do market research to determine where that particular job fits into the pay scale. Base that answer off of the responsibilities, and include the salary range in the description. If you want more clarification, it can help to check out your competitors for insights.
Above all else, make sure you leave room for growth. When you bring in new workers, hire them at the bottom of their fair pay scale, the news source noted. That way, as they improve and become more experienced, you can give them raises along the way. If they are brought in at the top, you could hamper your growth and put your finances in a tough spot.