Initial Wage and Salary Setting Guidance

In these lessons on Initial Wage and Salary Setting Guidance, we’ll explore setting wages according to job requirements and a person’s qualifications. You’ll learn the basics of market ranges and pay equity. You’ll also have a working knowledge of minimum wage laws.

Often, employers set compensation purely based on local minimum wage laws or when hiring a new employee or with regular performance reviews. This can be a reliable system in the short term, but to ensure you have an up-to-date compensation plan for your employees, you may want to consider job factors that change over time, like position duties and requirements or applicant qualifications, to ensure fair practices.

Employees are valuable to the company, and their value can sometimes be expressed through compensation. We’ll show you why it’s important to strategize ways to discover or avoid pay gaps, and then to investigate how and why this happened. You’ll learn to monitor the lowest rate a company can pay its employees, and, if you’re an international organization, we guide you to understanding many possibilities for region-specific minimum wage laws.

We’ll also discuss complying with compensation regulations to help your company prevent issues that could disrupt business. We teach you about the value of the right candidate to fulfill those duties, and how to determine if it’s better for you to set wage and salary ranges based on required qualifications or preferred qualifications. We’ll also explore how to price jobs appropriately by knowing the market ranges for similar jobs.