10 Jul Determining a Starting Salary
When a manager and human resource director are considering salary options for new hires, there are several different factors that could influence the determination of what would qualify as a fair offer. The starting salary should be based on important criteria like education and experience. If somebody is qualified for the job but they have no experience, the offer might be lower than somebody who has similar qualifications but also several years of related previous experience. Beyond that, there should be a pay scale that rewards a combination of quality work, commitment, and seniority. A standard pay scale where everyone makes the same salary doesn’t work for a sales manager, because incentives are important. Incentives not only build revenue but also foster an atmosphere of healthy competition, which is essential in the sales environment.
Motivating sales reps with seniority incentives may work, but criteria should also be based on consistent results and productive work ethic. The problem with motivating people based solely on the length of employment is that sometimes their work gets stale. People can become negative after years with one company. If they are no longer a major contributor to the success of the company, they don’t really deserve an award. Rewards based on seniority could possibly make them complacent because they know they are going to get a raise or bonus down the road anyway. Budgetary concerns also play a part in determining a starting salary for a new employee. Remaining within the budget is a major responsibility for any hiring manager, but only one of many they must consider.