How to Compensate Employees: Base Pay & Beyond

Quick Summary
Paying your employees properly is a key factor in getting your business rolling. And showing employees appreciation can be vital to retaining them. Make sure you pay staff enough to motivate them and reward them for their contribution, and do so in a way that is appropriate for their job. That can include base pay and other forms of compensation, such as commissions, bonuses, and stock options. You can also add in benefits, including sick leave, paid vacations and holidays.

Employee Base Pay: Key Considerations

Compensation begins with a base pay of some kind. Some pay-related issues you need to consider include:
 
  • Amount
  • Salary vs. hourly rate
  • Commissions

Other Ways to Compensate Employees Beyond Base Pay

Depending on the type of job an individual performs, there can be some additional ways to compensate your employees:
 
  • Bonuses
  • Overtime pay

Pay Your Employees With Key Benefits

There are important other ways to compensate staff beyond cash payments, including:
 
  • Vacation pay
  • Sick leave/Paid time off
  • Flexible work arrangements

Creative Ways to Reward and Compensate Employees

Flexibility is important – for employer and employee. As a startup company, you might want to get creative in finding ways to compensate your employees leveraging:
 
  • Deferred compensation
  • Stock options
 
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