Job Scoping Leads to Correct Pay

You’re about to offer someone a job. You’re concerned about getting the pay right.

What if they ask for more money? How much should you offer – and should you be open to negotiation?

These are common questions and concerns for employers in hiring mode. How much you pay someone should depend entirely on the value of their contribution to the running of and the profitability of your business now and in the future – and to a degree, the scarcity or availability of the skill set you require for the position you are filling – but again, this should not push you to a place of discomfort financially.

The thing is - while important to employees, the rate of pay is not what keeps people in businesses.

The feeling of being valued, of being involved in the team and of being treated fairly is what holds people in jobs.

Your focus needs to be on what rate of pay is fair and reasonable for the job you are wishing to fill – and that can only be based on the skills required to perform the role. It isn’t really a point for negotiation if your background work is thorough and pragmatic.

We assess the skills required for a client role by firstly skill scoping the role.

This means identifying each element of the role, the skills required to perform the role effectively – and at what level of skill or experience is required – this will determine the degree of autonomy allowed and required versus how much of your time or a manager’s time you are able to make available for the incoming person.

Completing a skill analysis is a really worthwhile exercise because it really forces you to be sure about what you need the incoming employee to deliver – thus the interviewing process becomes very focused on outcomes and deliverables rather than whether or not you like the candidate.

You must, however, keep a finger on the pulse of what employees are thinking about their pay rates

Having said that, employers should keep half an ear on what their employees think about their rate of pay and working conditions. No employer wants to lose valuable experience from the team for the sake of a couple of thousand dollars a year in wages (nor do you want to pay more than what is required!)

This double-edged sword of pay rates based on skills required and market pressure is best managed by holding an annual employee culture survey, which can include questions around the perceived rate of pay as well as questions around working conditions, training programmes and any other non-monetary rewards for employees.

If asked ‘would you like to be paid more’, most people will say ‘yes’. If asked in the context of their overall working environment, most people will give a balanced feedback.

If you need help with formatting your staff survey on pay rates, please contact us - we will be happy to help.

Contact us to find out how we can help your business.

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Tanya Gray is your strategic HR partner, passionate about driving clients’ productivity with innovative solutions and collaboration.

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