Should Your Team All Be On The Same Pay?

In an ideal world all of your team with the same job titles would be on the same salaries and everything would be simple, however, situations can often arise that challenge that status quo, but should you stand your ground or be flexible in these situations?

It is up to you, but if you choose to vary salaries, make sure its for right reasons.

Here are some factors that can determine employee salaries.

Your company offers salaries below the going rate for your city

If this is the case, it may be more difficult to entice new starters when there are other companies with more attractive salary options. You can start out advertising the roles salary as you would like, but if you don’t have a suitible applicant apply, you may have to reconsider your numbers. It may be advisable to propose a case and negotiate increases in salaries for your existing team to ensure your staff are retained, ifyour budget permits this.

You need to fill a position urgently

If you are down a few staff members or have a massive backlog of invoices piling up, there is definitely an incentive to resolve the situation with more manpower as soon as possible and you are more likely to be able to plug that gap with a good salary. 

Temporary staff 

Wether you have staff on maternity leave or need an extra pair of hands to assist at a busy time of year, you may hire a temp worker for a fixed term or for a contract that lasts for an unspecified time for as long as they are needed. Usually temps are going to expect a higher rate than average for forgoing perks like guaranteed employment or other company benefits reserved for permanent staff.

Someone asks for a pay rise

A good company will automatically grant payrises at predetermined given periods such as annually that will help keep the salaries competative. However if that is not the case, some staff are bound to at some point ask for a pay increase. Staff dont usually take such an ask lightly so if they are asking its likely that they have been looking at other options and may be lost if their salary is left to stagnate. 

Someone has given their notice

If a staff member comes to you and hands you their notice, you can be very certain that they are very serious about looking for a new role and they will soon be gone as it stands. After you get a chance to sit down with and speak to them, you may discover that their salary is the cause of them wanting to leave. This then becomes a chance to either let them go or if you determine they are too indispensible to the team, find out what they want and find out if you can get them what they want. 

Staff that have extra responsibilities

Some staff, although bearing the same title, may have extra responsibilites such as payment runs or being the senior member of staff that others reach out to for help before going to a supervisor or manager for help. 

Conclusion

There are many reasons that an existing staff member or new starter may be on a different rate from the other staff, it is up to you to weigh up the pros and cons for you and your team for each option. 

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