Skip to content

How to Know You’re Not Paying Your Employees Enough

Remuneration can be an uncomfortable topic for employers and employees. Employees don’t always like bringing up the subject of money with their superiors. If they do, they often feel awkward about it. 

A lack of communication about wages and salaries can sometimes mean employers don’t know if their employees are satisfied. Sometimes, they only learn they aren’t when workers find employment elsewhere. Don’t let it get to that point. Here are some of the most common signs you’re not paying your employees enough. 

Picture: Vitaly Taranov 

They Live Paycheck to Paycheck

You won’t know what your employees spend their money on. You also won’t know how good their budgeting skills are. However, if you hear whispers about most of your employees living paycheck to paycheck, it might be time to make some changes. 

While payday loan providers like My Canada Payday can be an excellent option for many people, permanent shortfalls aren’t sustainable. It might be time to start looking into whether you can afford to give your valued team a pay rise. 

You’re Paying Them Below Market Rates

It’s easy to lose track of market averages when you’re engaged in everyday business. However, it doesn’t hurt to occasionally check market rates to see if you’re keeping up. Demand for particular skills can see wage averages quickly skyrocket. 

Whether you suspect you’re not keeping up or know you aren’t, type a position and ‘wage average’ into a search engine to see what comes up. If your current salary offerings don’t compare, you might need to make adjustments to remain competitive. 

You Hear Complaints

Employees might not complain about their income to your face, but that doesn’t mean they’re satisfied. You might hear whispers amongst employees about inadequate compensation. As soon as you hear rumors of general dissatisfaction, perform a compensation analysis. Wait too long, and your employees might seek work elsewhere. 

You Can’t Find New Employees

Many industries are struggling to find new employees, especially for highly-skilled positions. However, you might struggle more than most if you aren’t offering competitive compensation. Before posting a job ad, compare your hourly rate or yearly salary to other businesses. Offering the same or more than them might improve your chances of securing the best talent. However, it’s not all about money. You might also improve your hiring rate by offering other desirable perks like health insurance, paid leave, and remote work where possible. 

You Have a High Turnover Rate

You might not have any problems securing new employees, but your troubles might lie in keeping them. Not all prospective employees know their obligations before starting a new job. When they find out through on-the-job training, they might not think the compensation is fair for how much responsibility is on their shoulders. 

If your business continuously suffers with poor staff retention, consider whether your remuneration could be to blame. If you’re unsure, don’t be afraid to send out anonymous staff surveys to find out more. You might be surprised by how much you learn when people can speak openly. 

Most business owners strive to keep their employees happy, and fair wages are an excellent place to start. If you’ve noticed any of these signs above, now might be the right time to review your remuneration packages and give your team the earnings they deserve.