Almost Half of Small Firms to Raise Salaries this Year

Almost half of small businesses are planning to offer staff a raise this year, research from the British Chamber of Commerce (BCC) has found. The BCC survey of 450 SMEs found that 45% planned to increase wages in 2011, 49% to freeze salaries and just 6% to lower pay. “Firms are doing whatever they can to retain staff even when conditions are more challenging.” said BCC director of policy, Dr Adam Marshall. “Despite a number of businesses suggesting that pay will be frozen, almost as many are suggesting wage rises in 2011. Equally, many businesses say that they will deal with reductions in public spending by taking a hit on the bottom line ? rather than reducing staff numbers.” However, Chartered Institute of Personnel and Development performance and research adviser... »

Rates of pay

Acas Fair Wage Guidance

Employment advisory service Acas has published a free guide to help employers evaluate job roles and provide an appropriate rate of pay. The guide, Job evaluation: considerations and risks, advises employers how to assess the relative importance of the various jobs within their business, taking into account skill, effort, responsibility and working conditions. It then shows businesses how to use these factors to implement a fair pay system. Acas Scotland director Frank Blair said: “Employers sometimes find it hard to justify their grading and pay systems. Putting in place a job evaluation scheme can remedy this and can also help prevent equality and HR–related problems from arising. “A good number of the difficulties encountered by businesses will be avoided by adequate p... »

Salaries: Knowing what to Pay

A Good Starting Point When working as a small business, sometimes as a sole employee and the time comes to take on staff as business and workload increases. But how do you know what to pay your potential to employees? How do you stay competitive? A good starting point. Setting a salary at the right figure is something that needs to be thought through. It is important to bear in mind the current national minimum wage, and working time regulations. If you set a positions salary too low, you could end up with an empty reception room as no–one with the appropriate skills and experience would want to work for you. On the other hand, if you set the figure too high, you could see your new employee’s wages reducing your profit margin. There are a few things that you may have to take in... »