Question Of Money

DIRTY_CASH

Hi Guys,

I wonder if any employers out there can help me.

When employing a member of staff say, for instance and administrative post,
how do you go about deciding a wage for this person.

Is there an advisory guideline for instance from the government on what the average
pay scale for a demographic area or anything similar.

I would appreciate any information.

Many Thanks for your time.

Andy_L

Annual Survey of Hours & Earnings
http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=13101

Labour Market Guide
http://www.statistics.gov.uk/about/data/guides/LabourMarket/default.asp

Conor_3

By looking at what wages are being paid for similar jobs in the area. Sometimes if someone is outstanding, it's worth upping their wages as decent staff are worth keeping.

The other thing you have to remember are the employers costs. Basically, it costs an employer around 20% more than the hourly rate you get in Employers NI and Statutory Holiday Pay. Employing people isn't cheap and the pay you see advertised for the job is around 2/3 of the real cost.

Savvy_Sue

Some employers will adopt a payscale from a similar organisation, eg in a Housing Association the payscales may be very similar to a local authority, because the work is broadly similar so easy to make the links.

Others will look at what the local 'market rate' is, the local paper is a good source of information for this!

CFC

If this is a small firm and has not done much recruiting before, and therefore doesn't really know what the market rate is, the place where the job is advertised will often be helpful.

On the other hand, it may well be that the pay is the determinant, ie we can pay £12k per annum for this role, so we interview until we get one who can actually do it and is willing to accept this pay rate.....all depends on the company.