Do you think paying wages substantially above market benchmarks is an advantage or disadvantage to employees?
There is an interesting article on a blog site for Workforce Management.
The article identifies that paying employees “well above” the market rates for jobs is the worst thing a company can do to them short of something illegal.
The definition of “well above” in the article is identified as a rate 50% to 100% above the market.
The 2 main disadvantages noted were: 1. Employees not recognizing that they are overpaid. 2. Employees building lifestyles that they cannot sustain if an economic tragedy befalls them.
HR POINTER: The fact is that there are serious disadvantages to paying employees far below or far above the market rates for positions.
With all the Internet resources today, employees may think that they have good information as to where their salaries fall in relation to similar job titles.
Unfortunately, employees often do not have the experience to distinguish the subtleties between publicly available data and their own salaries.
A solution that we provide to companies is help in creating Wage & Salary Programs that are built around solid market research.
In addition, we provide companies with a mechanism for communicating to employees the competitiveness of compensation.
For more information about our program, click on the link below: http://www.yourparttimehrmanager.com/wage-and-salary-program/