Are You Paying Your Employees Fairly?Written on February 20, 2020
It’s tough as a boss to try and figure out if you’re paying employees fairly. You might assume salaries are in line with other companies in the IT field, but there’s a lot of variables employees consider when they think about salary and their compensation package.
Cultivate A Company-Wide Salary Philosophy
When it comes to figuring out if you’re paying employees fairly, an overall salary philosophy will make things much easier. Most companies choose to try and match the market, while those who are looking for exceptional talent will usually try to lead the industry with salary and complete compensation packages.
Having a clear and consistent strategy for how your company pays compared to your industry and geographic region helps make it clear if an employee’s current salary is fair based on their experience, education level and skill set.
Consider using a variety of employee benchmarks when it comes to salary. Some organizations like to pay using merit guidelines in addition to a base salary. Others largely structure around incentive plans. Bonuses and other incentives are an excellent way for you to reward employee work ethics and results, Loyalty breeds loyalty!
Don’t Forget About Employee Business Costs
Companies should also factor in employee cost when it comes down to figuring out fair compensation. For example, elements like the cost of recruiting, a benefits package, and a general salary are all factors that go into how much an employee ‘costs’ a business.
Additionally, the cost of office spaces and employee vehicles (if applicable) should also be considered. Calculating employee costs helps business owners arrive at a general fair compensation range by understanding what value an employee provides versus their cost to a company.
Breaking Down The Richmond Virginia IT Market
Salary ranges in the IT field across Richmond Virginia do vary, but trends across a few key positions are relatively stable.
For example, an IT manager, according to statistics, makes about $122,000 per year on average, with a 25% range falling between $190,000 and $135,000. A senior IT manager, according to Glassdoor, takes home about $115,000 per year in Richmond on average. Software developers usually make about $71,000 per year with a bonus amount of around $4,000.
Keeping these average salaries in mind for the Richmond area should help your business determine if you are compensating employees fairly.
At Morton, we understand how challenging it can be to hire new employees. Start a conversation with our team and let us connect you with top tech talent who are ready to work.