So you want to catch up with the likes of Google, get just a parcel of the recognition sports brands like Nike does or even just have customers fall in line during morning rush to get their daily coffee cup the way every Starbucks branch seem to. But you suddenly remember you don’t have tech geniuses working for you and neither do you have the means to hire the biggest names in sports to promote your product or a brand logo that customers will always attach your company with to automatically attract them.
Newsflash. You can’t (at least, not just yet, if you’re operating as a small business or a startup one) and you don’t have to, anytime soon, but you’re not alone in that department either. However, this doesn’t mean you will just watch and let nature take its course with your business, and see how things will work out.
Not being able to compete with the biggest global brands doesn’t mean you can’t build your own customer base and profit from the products and services your company is selling. It also doesn’t mean you won’t be able to attract the right people to work for you either, in order to help you make it on top of the industry, earn a place there and make your business grow, as is the goal of every businessman. You may also like work agreement templates.
You have to know that as the corporate world gets more demanding and dynamic, the hiring market can also get just as tough with the competition wanting to hire the same people that you need to be part of your company. Fighting for them can only mean offering a compensation good enough to attract them before the competition does. You may also see incentive agreement templates.
And sometimes, especially for small and startup businesses, this can easily get challenging but with the help of drafting a compensation agreement in line with employment compensation standards, your company goals and what it can afford to offer, it may just be possible to have a team of skilled, qualified, and competent professionals on your side.
Based on data released by the Bureau of Labor Statistics, workers in the United States for the fourth quarter last year were earning a median wage of $857 per week or $44,564 per year for a 40-hour work week. Compensation was at 0.9 percent higher than 2016. However, salaries vary based on gender, location, industry, job, education, ethnicity, and a few other factors. You can also like business agreement templates.
It is therefore important to do your research before applying for a job and consider these factors. For example, the salary being offered for a sales representative might be higher in the city than a small town in the same state for the same position, since the cost of living in cities are typically higher. A company must also consider benefits as part of its compensation package when making an offer because it makes up a very important part of a future employee’s decision-making.
Getting paid for your services, for what you can do and for what you have proven to be capable of doing, is one of the most important reasons why people go to work. Simply put, you go to work to earn your pay and if a person thinks he or she isn’t going to be paid right, then he would pass and move to the next offer. You may also like sample legal agreement templates.
An employment agreement is a legal contract establishing a formal employment relationship between employer and employee. On the other hand, a compensation agreement is written by employers to support the current employment agreement signed during the hiring process. The former is used to describe an updated salary package and when it will be implemented while the rest of the employment terms remains the same.
Compensation agreement further defines is any direct or indirect compensatory, payment or other financial agreement, arrangement or understanding with any person or entity other than the Corporation, including, without limitation, any agreement, arrangement or understanding with respect to any direct or indirect compensation, reimbursement or indemnification in connection with candidacy, nomination, service or action as a nominee or as a director.
Most of the time, for employees who work on commission or in positions that comes with performance bonuses, compensation agreements are a vital part of making sure that all parties are on the same page as to the employee’s compensation terms. You can also use compensation agreements with higher management team who may be under executive salary programs, bonuses and other perks that comes with positions in the executive level. You can also read transfer agreement templates.
The purpose of an employer’s compensation philosophy is to attract, retain, and encourage the right people. Reaching these goals would take a little “creativity” or a combination of three compensation: base pay or salary, incentive whether it comes in the form of cash or awarded to the employee in another form such as stock, and company benefits which are mostly non-monetary rewards. A combination of all three will make up a good pay philosophy for a company’s hiring process. The challenge lies in being able to develop and implement effective compensation programs without needing to exhaust majority of the company’s resources. You can also read framework agreement templates.
You need to outline the compensation and benefits package properly and define the following: salary or hourly rate, details about salary raise, bonuses or incentives and how they are obtained. Provide details for what your benefit plans include. For example, for the medical plan, what percentage would the employee have to pay or how much does the company cover? The agreement should have the information of all parties involved; employee and employer. The agreement should also state how often the employee receives their salary, commission, whether it’s monthly or every two weeks. You may also like sample agreements.
Employers need to make smart decisions if they want to retain top talent and quality workforce. Such decisions would demand providing the right compensation and benefits program. While compensation generally includes wages, salaries, bonuses and performance bonuses or commissions, business owners shouldn’t ignore the benefit part of providing or offering compensation and benefits because the benefits portion is the one that makes employment contracts more attractive with the priorities that mot employees are looking for.
Here are other reasons why employee compensation program is very important:
It’s all good to say we want to make a living by doing what we love best and there are many who can achieve that if they work hard enough and make some sacrifices (big ones) along the way. But as an employer, you need to understand that people would really want to be in the best possible financial position. Those who are worth the amount of salary they are asking for and know their value would naturally want a position in a company that would be able to pay them accordingly. You may also like work agreement templates.
This is why it is also important to research and know what the competition is offering and make sure that you would be able to top or offer something similar to your potential workers so that you would be able to attract the best people to work for your company. Getting the right people or candidates on board the first time around lessens recruitment spending and helps you focus on the other areas of your business. You may also like management agreement templates.
Employees who are properly compensated feel valued as workers and it shows you value them as human beings. When people are valued, they have an increased employee morale and they feel better about coming to work everyday. As a result, the company’s overall morale also increases and people become more motivated to do their jobs well. In addition, when the workers know that they will be rewarded with bonuses or commissions, they tend to deliver higher results which means bonus and commission as part of the compensation plan, is an important part of a company’s growth and success.
Happy employees are productive individuals. When employees are motivated by a good compensation agreement, it also leads to a stronger job satisfaction. When they are satisfied, they stay longer, perform better, and work harder. They also get a sens of fulfillment of doing their part when the company reaches a milestone, and rightfully so. When you have employees who are satisfied with how they are being treated by their employer and the management in general, you know you have people you can depend on to do their jobs willfully to an extent that the company’s success also means so much to them.
Not only would it make your company grow and become more profitable, it would also encourage a healthier and happier working environment. At the end of the day, everyone just wants to be appreciated, by a job well done and nothing would speak more to an employee doing his or her job as expected, than being properly compensated and rewarded for it. You may also read sample shareholder agreements.