Employee Compensation, Incentives, and Benefits

Wages and salaries should be competitive with other companies in the business and should be adjusted to the difficulties and responsibilities of each job within your company.

There are other factors to consider when setting salary levels including:

• Minimum wage
• Salaries for similar jobs in the area
• Applicant's previous salary and experience
• Potential of applicant to add to company profits

You should have a policy, which is clearly communicated to your employees, about how wage increases are determined. Are they determined by length of service, by performance, or by a combination of both?

Newspaper advertising is a common way of recruiting new employees. Display ads are used for specialized jobs, whereas classified help-wanted advertising can be used for recruiting all types of employees.