Small businesses have a constant struggle between wages and profit. Sometimes the non-monetary approach can solve the problem for employer as well as employee.
Our small business management company dealt with many start-up businesses. This is the most vulnerable of times for any small business. Job assignments can be lessened later on and pay increased, but it is very difficult to add duties or explain that expenses have to be cut after an employee has been with a company for any length of time. That is why the line on the application requesting a desired salary is there. It gives the employer and employee a starting point to reach an amicable pay rate for the job.
It is very important that a concise job description be outlined in any advertising and that during the subsequent interview the applicant be made to understand exactly what is expected as far as performance and future compensation. Always ask for follow up questions after the job description is read or verbally described.
Many managers prefer to use a trial or probationary period paying the lowest wage the applicant will accept with a promise of increased compensation within a certain period of time, usually 30-90 days. The anticipated increase in compensation does not necessarily have to be an increase in wage. Titles and non-monetary perks and bonuses can be just as rewarding.
Title: Often times a shorter period of training can be followed with a title, such as shift supervisor, lead cook, or inventory control officer. Knowing the applicant’s areas of experience and ability will help the human resource manager determine the proper choice. To many people a title that describes their area of responsibility, and the power it gives them, is more important than just money.
Perks: These are an inexpensive way to reward an employee and many of them can be accredited as a business expense as well. A great incentive for employees of a food establishment, of course, is a meal provided for each shift worked. We supervised an old-time ice cream parlor and each counter person was allowed an ice cream creation of their choice each shift. Gas stations can give a discount on gas purchases and convenience stores often give discounts on product purchases, especially in bulk. These kinds of perks work for all ages and positions.
Bonuses:These special rewards can be provided with tickets to local events. Often times these are promotional items vendors share with businesses and they can be passed on to worthy employees. Free uniforms beyond those required by laws can be a big plus for lower paid employees and managers can actually save on special logo projects by buying in bulk anyway. They are a business expense and can cost an owner much less than wages with additional government taxes.
If a business manager knows his employees he can be creative with cost efficient compensation and benefits for the employees. He can provide specific perks that will make the employee feel appreciated and subsequently more devoted to the job and cooperative with supervisors and fellow workers.