CompBen 101

 CompBen 101

When you review for salaries, always look at the disparity between the basic pay of your old and new employees. The old should have better pay commensurate of the value that they gave to the organization.

It is very counter productive to hire new employees at the same basic pay as your old ones. Worst if you hire them at a much higher basic rate.

For a performance-based job, meaning you'll get more pay in incentives and bonuses if you produce more, of course old employees will always have a higher pay than the new ones. But have you tried computing the actual percentage of the value provided to you by both set of employees? Add in the cost of training and the loss in productivity before the new ones get to the level of the old employees. Try it and you'll see a big value added gap between the two.

Compensation is the number one motivation why employees work. Most often than not, employees equate them with their sense of accomplishment and their source of pride. The new set of workforce places a high value on the type of luxuries that they can get out of their salaries. Food, travel, gadgets and all other things that will make them feel that they have done well in life. Take that out and they'll find another company to work with faster than you can blink.

Just some thoughts!