| Compensation: |
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As you struggle to get your company up and running, you won't be
able to afford to pay an employee too much. But if you don't offer a
competitive salary, you won't attract good enough employees to get your company
going.
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You can pay an employee based on:
- how much the employee produces
- how many hours the employee works for your company
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| Most companies calculate their pay schedules based on the number of
hours worked. For obvious reasons, however, this method often encourages
employees to pay more attention to the clock than they pay to their jobs. |
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Depending on the nature of your business, you can address this
problem by providing incentives, in addition to an employee's base salary. You
can calculate the incentives according to one or more criteria, including:
- Level of sales
- Level of quality
- Level of safety
- Level of health
- Level of profits
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| Employers also offer profit-sharing and stock-ownership plans, both
of which can be devised so that all employees share in a company's growth. |
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| You may wonder how much to pay a particular employee doing a
particular job. You can find out the average wage or salary for a particular
job from your local chamber of commerce or board of trade, your local library,
or management consulting firms. |
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| Benefits: Group insurance, unemployment insurance premiums, Canada
Pension Plan, holiday and vacation pay, pension plan, workers' compensation.
Some of these benefits are mandatory; others are optional. To make sure that
you and your employees operate on the same wavelength, you should establish
your company's benefit policy from the outset, prepare a written description of
the policy, and discuss it with each employee as he or she joins your
company. |
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