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- iHaveNet.com: Small Business Guide
Small Business Money Matters
There are many ways to make employees happy: a congenial work environment, opportunities to learn on the job, flexible schedules, and the list goes on. But at the end of the day -- or more precisely, the end of the week -- employees' happiness comes from getting paid.
Creating an employee compensation plan is vital for any enterprise with intentions to hire a staff.
Creating a thoughtful employee compensation scheme is important no matter how few employees you initially hire. A good employee compensation plan takes into account the long-range goals of your business. And by creating a compensation template, you can relax: You won't have to reinvent the wheel every time you expand your staff.
Keep in mind, only two-thirds of your employee cost is actual raw salary or hourly wage.
According to the latest numbers of the Bureau of Labor Statistics, which is part of the U.S. Department of Labor, almost 30 percent of the cost of paying either an hourly or salaried employee goes to benefits, such as health care coverage, worker compensation insurance, and social security payments.
Agencies such as the Better Business Bureau, as well as other government and Web-based resources, can help you understand what benefits are mandated by law. An accountant or a banking adviser is a good resource for discovering the standard ways in which to select benefit providers, such as insurance companies, and how to cut a payroll check with the smallest amount of paperwork. But perhaps the most important task is to investigate your industry to determine the wage scales expected from prospective employees. Finally, be aware that certain businesses regularly rely on unionized workers, which means you will need to compensate workers along union rules.
By doing a little homework, you won't only be making your employees happy. With a solid employee compensation plan in the bag, you'll have reason to smile too.
Check out these additional articles on employee compensation:
Small Business Guide
- Starting Up Your Business
- Coming Up With a Winning Business Idea
- Common Startup Mistakes
- The New Rules for Startups
- Business Incubator FAQs
- Naming Your Business
- Researching Your Business
- Your Personal Savings
- Registration, Licenses, and Permits
- Getting a Tax ID Number
- Fast-Growth Startup Resources
- Structuring Your Business
- Overview: Corporations
- State Offices of Incorporation
- Incorporate Out of State?
- Writing a Partnership Agreement
- Choosing a Board of Directors
- Basics of a C Corporation
- Basics of an S Corporation
- Basics of an LLC
- Basics of a Sole Proprietorship
- Basics of a Non-Profit Corporation
- Basics of a Professional Corporation
- Basics of a General Partnership
- Basics of a Limited Partnership
- Your Company's Public Relations
- Elements of a Successful Public Relations Campaign
- How to Use Your Press Coverage Effectively
- Press Releases
- How to Write a Successful Press Release
- Sample Product/Service Press Release
- Sample Commentary Press Release
- Sample Event Press Release
- Sample Tips Press Release
- Sample Personnel Press Release
- Effective Competitive Analysis
- Managing Purchasing to Maximize Cash Flow
- Top Six Pricing Mistakes Businesses Make
- How to Avoid Lowering Your Prices
- Bidding Basics
- Hiring Staff
- Creating an Effective Job Description
- Do You Know How to Pick Them?
- Little-Known Hiring Resources
- Classifying Contract Workers
- Tips for Successful Interviewing
- What You Can't Ask in a Job Interview
- New Hire Paperwork
- Small Business Insurance
- Types of Insurance for Small Businesses
- Small Business Insurance FAQs
- Insurance Resources for Small Businesses
- Home Office Insurance: Myths & Realities
- Small Business Resources
- Government Resources for Small Business on the Web
- Resources for Women Entrepreneurs
- Fast-Growth Startup Resources
- Small Business Security Resources
- Taking Time Off
- Your Pre-Vacation Checklist
- How to Take a Vacation
- Learning to Delegate
- Getting Away When You Can't Get Away
- Preparing for Tax Season
- Year-End Planning Tax Savers
- 10 Ways to Pay Less in Tax
- 25 Common Business Deductions and Expenses
- Avoid These Common Errors and Audit Triggers
- Understanding the Home Office Deduction
- Corporate Income Taxes Primer
- Employment Taxes Primer
- Sales Tax Primer
- Sole Proprietorships and Partnerships Tax Primer
- How to Get a Filing Extension
- Year-End Reconciliation
- Getting the Most from Your Accountant
- Developing Accurate Financial Projections
- Cash Flow
- 10 Ways to Help Increase Your Cash Flow
- Cash vs Accrual Accounting
- Bookkeeping and Record Keeping Basics
- Quick Ways to Get Through a Cash Crunch
- Projecting Cash Flow
- Cash Flow Triage
- Getting Funding
- Cash Flow Through Factoring
- Small Business Investment Corporations (SBIC)
- Traditional Funding Sources
- Non-Traditional Funding Sources
- Your Company's Credit
- How to Read a Business Credit Report
- Credit Terms Glossary for Your Small Business
- How to Protect and Improve Your Business Credit Rating
- Give Your Business the Financing Edge
- Employee Compensation
- Employee Benefits
- Bonuses: How To Be Fair
- Workers' Compensation Q&A
- Keeping Workers' Compensation Costs Down
- Payroll Management Choices
- Key Elements of Payroll
- Working with a Payroll Service Provider
- How to Create a Business Plan
Small Business Money Matters - Compensating Your Employees
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