Creating an employee compensation plan - WDAM - TV 7 - News, Weather and Sports

Creating an employee compensation plan

Posted:
Keep in mind, only two-thirds of your employee cost is actual raw salary or hourly wage.  (©iStockphoto.com/Alexandra Katina) Keep in mind, only two-thirds of your employee cost is actual raw salary or hourly wage. (©iStockphoto.com/Alexandra Katina)
  • Most ReadMost Popular StoriesMore>>

  • City of Hattiesburg employee fails to register as sex offender

    City of Hattiesburg employee fails to register as sex offender

    Thursday, July 31 2014 12:04 PM EDT2014-07-31 16:04:34 GMT
    A City of Hattiesburg employee is behind bars for failing to register as a sex offender. Public Works employee Martaze Denzel Hammond, 35, was arrested Wednesday by the Forrest County Sheriff's DepartmentMore >>
    A City of Hattiesburg employee is behind bars for failing to register as a sex offender. Public Works employee Martaze Denzel Hammond, 35, was arrested Wednesday by the Forrest County Sheriff's Department after exceeding a 90 day period in which to register as a sex offender.More >>
  • Lamar Co. man sentenced in federal court on drug charges

    Lamar Co. man sentenced in federal court on drug charges

    Thursday, July 31 2014 12:31 PM EDT2014-07-31 16:31:27 GMT
    A Lamar County man has been sentenced to nearly 8 years in federal prison on drug charges. Tommy Lucas, 48, was sentenced to 95 months by U.S. District Court Judge Keith Starrett Thursday morning. LuacsMore >>
    A Lamar County man has been sentenced to nearly 8 years in federal prison on drug charges. Tommy Lucas, 48, was sentenced to 95 months by U.S. District Court Judge Keith Starrett Thursday morningMore >>
  • Four arrested after attempted correctional facility drug crime

    Four arrested after attempted correctional facility drug crime

    Thursday, July 31 2014 4:21 PM EDT2014-07-31 20:21:06 GMT
    Four suspects were arrested Thursday during an attempt to commit a crime at the South Mississippi Correctional Institution. According to prison officials, officers responded to a fence alarm around 5 a.m.,More >>
    Four suspects were arrested Thursday during an attempt to commit a crime at the South Mississippi Correctional Institution. According to prison officials, officers responded to a fence alarm around 5 a.m., July 31, 2014, at the SMCI campus located in Leakesville, MS where officers found two packages. K9 personnel picked up a trail of the suspects which lead towards Wildcat Corner, located at the corner of High School Road and Hwy. 57 near Leakesville.More >>
 

There are many ways to make employees happy: a congenial work environment, opportunities to learn on the job, flexible schedules, and the list goes on. But at the end of the day -- or more precisely, the end of the week -- employees' happiness comes from getting paid. Creating an employee compensation plan is vital for any enterprise with intentions to hire a staff.

Creating a thoughtful employee compensation scheme is important no matter how few employees you initially hire. A good employee compensation plan takes into account the long-range goals of your business. And by creating a compensation template, you can relax: You won't have to reinvent the wheel every time you expand your staff.

Keep in mind, only two-thirds of your employee cost is actual raw salary or hourly wage. According to the latest numbers of the Bureau of Labor Statistics, which is part of the U.S. Department of Labor, almost 30 percent of the cost of paying either an hourly or salaried employee goes to benefits, such as health care coverage, worker compensation insurance, and social security payments.

Agencies such as the Better Business Bureau, as well as other government and Web-based resources, can help you understand what benefits are mandated by law. An accountant or a banking adviser is a good resource for discovering the standard ways in which to select benefit providers, such as insurance companies, and how to cut a payroll check with the smallest amount of paperwork. But perhaps the most important task is to investigate your industry to determine the wage scales expected from prospective employees. Finally, be aware that certain businesses regularly rely on unionized workers, which means you will need to compensate workers along union rules.

By doing a little homework, you won't only be making your employees happy. With a solid employee compensation plan in the bag, you'll have reason to smile too. 

Copyright (c) 2010 Studio One Networks. All rights reserved.

INFORMATIONAL DISCLAIMER The information contained on or provided through this site is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional financial or accounting advice. Always seek the advice of your accountant or other qualified personal finance advisor for answers to any related questions you may have. Use of this site and any information contained on or provided through this site is at your own risk and any information contained on or provided through this site is provided on an "as is" basis without any representations or warranties.