What people are paid.
WHAT TO ESTABLISH
What each role is worth in your market What you can afford How pay progresses
HOW TO ESTABLISH MARKET RATES
Advertised ranges Industry surveys What candidates tell you
WHY IT MATTERS
Underpaying produces turnover, which costs more than the difference.
WHAT TURNOVER ACTUALLY COSTS
Recruitment Lost productivity during vacancy Training time Lost knowledge
WHAT TO AIM FOR
Internal consistency: similar roles paid similarly.
WHY
Inconsistency is discovered and it is corrosive.
WHAT TO DOCUMENT
The basis for each person's pay.
WHY
It is what you rely on if it is challenged.
WHAT BENEFITS TO CONSIDER
Health cover Pension above the minimum Leave above the minimum Transport or allowances Learning support Flexible working
WHAT EMPLOYEES OFTEN VALUE MOST
Predictability of pay Flexibility Being treated well
WHY THAT MATTERS TO SMALL EMPLOYERS
You can compete on things that cost little.
WHAT TO AVOID
Benefits nobody uses Promises you cannot sustain
WHAT TO REVIEW ANNUALLY
Whether pay still matches the market.
WHAT TO DO ABOUT INFLATION
Address it deliberately, rather than letting real pay fall silently.
WHY
Silent erosion is noticed, and it drives departures.
