Creating a Competitive Compensation and Benefits Package

Hiring and retaining good employees is dependent on the adequacy of the compensation and value you provide. The quality of life in the workplace can also be a major factor, but getting a new employee in the door depends on pay and benefits.

Balancing the cost of having an employee against the benefit that employee will provide is individual to every business. However, assuming your financial situation permits adding or replacing employees, establish what you'll offer. Do this before you place a job ad or otherwise publicize the opening. Know how much you can, and would, pay before talking to any potential applicants.

How do you determine what's competitive? Obviously, there are industry and geographic practices that impact an applicant's expectation. Beyond that, there are a number of ways to find out what you'll have to offer a prospective employee.