Setting the Proper Pay Rate
Before you start looking for your new employee, you need to decide how much you will need to pay. There are three ways to determine if you’re setting the proper pay rate:
1. You can “ballpark” it, using your intuition to set a pay rate for the new job that seems right. This approach is used quite often in reality. It is a matter of knowing what you are paying other employees doing a similar level of job, knowing what the candidate is asking, or researching internet job boards to see what other companies are offering for a similar job.
2. If you’ve completed the job evaluation exercise in the Pay & Benefits module and the vacancy you are filling is for an existing position, use the salary range that you’ve already set.
3. If it is a brand new position, you should go through the job evaluation exercise in the Pay & Benefits module to get the pay grade and salary range. This can be a little tricky if you’ve never done it before. Remember, help is only a click or a call away.