Employee pay is no doubt a difficult subject, not to mention sensitive. Its very nature makes comparisons inevitable. It is therefore important to get things right from the start. In short, failure to get things on the right footing can have serious consequences at a later stage.
Let’s not beat around the bush: employee pay represents a significant business cost and, as any entrepreneur knows, it’s important to keep these costs under control. Having said that, failure to attract the best talent available can result in poor overall performance. The balance lies somewhere in the middle.
Besides legal obligations, employers need to strike a balance between the ‘going rates’ in the industry and the capacity to attract talent with the necessary experience and skills to make the company a success.
Setting pay scales can be tricky and employees often ignore the data upon which these are based. It is therefore important to ask the HR department for more information on this matter. Lack of transparency can lead to employee discontent as demonstrated by a number of recent studies such as ILR School’s Mary Catt.
As any employer knows, keeping payroll records and PAYE deductions is essential as well as a legal obligation. HMRC’s website contains a wealth of material related to this topic. For those entrepreneurs big on ideas but short on time, one way to resolve the issue is to subscribe to Sage One Payroll. This is the ideal solution for small companies and start-ups that manage payroll for up to 15 employees.
Sage One Payroll is a secure, cloud-based software that calculates deductions, generates payslips and files Real Time Information with HMRC. One major advantage is that payroll and employee records are both securely stored online and, therefore, are available at all times. All that’s needed is an internet connection. Sage One Payroll takes the stress away from the admin and includes workplace pensions support. What’s not to like?
Sage One Payroll. Try it here