My theory on paying employees is very simple. Pay them as much as you can possibly afford to pay them!
Once we are able to afford actual employees, this will be the model we use.
I will definitely be willing to pay a premium to employees that have premium skills. For example, if the market for a particular position is $10/hr, we'll probably paying $12/hr, or 20% more.
binki said:
I heard this thought a few months ago, 'Everyone is paid exactly what they are worth. If they were worth more, they would move to the higher paying job'. Sounds reasonable to me.
Sounds completely unreasonable to me!
There are plenty of people that aren't getting paid what they are worth. Some don't even know it! Some know it, and choose to stay where they are, because the pay isn't everything.
I know I would be much better off in a position that paid less, I enjoyed what I was doing, and the atmosphere was great. Rather than if I was in a position that paid more, but I hated the job, even though I would be qualified for it.
I work for a rather large health insurance company in my "regular" job, and I have the authority to hire employees in my department. Human Resources sets the pay scale.
There are close to 80 people in my department, all doing the same basic functions. But the pay ranges from $12/hr to $18/hr. There are even employees with less experience making more than some with more experience. This is not my decision, but just the reality of the situation.
Fred you said that if they have an avalanche of people show up for the position, then they are too high. I disagree.
If you have an avalanche of people show up, AND you can afford to pay what you posted, that's the best possible situation in which to be.
You have a larger pool from which to choose! I'm sure there are plenty of excellent workers that would be willing to leave their current place of employment, and give that same excellent work for more money!
Javier, my advice to you is to find what they going rate is in your market. See if you can afford to pay more than what the market is, and do that.
Your company can only be as good as your employees. More money attracts the better employees. Find the best ones you can, and pay them as much as you can!