What is a salary guide?

A salary guide is a document that comprises a comprehensive list of pricing for different salaries. It is created by industry experts who take data from thousands of professionals on their plans, wants and needs for the job market.

Canada salary guides include:

• average salaries for hundreds of jobs
• contractor rates
• hiring predictions and trends
• most in-demand jobs in Canada
• remote and hybrid working trends
• what benefits do workers want

Though salary guides could have different information in them, this gives you an idea of the basic contents.

Why use a salary guide?

There are a lot of reasons for a company to use a salary guide when setting their employee’s wages. One of the biggest reasons to use a guide is to make sure that you aren’t paying too much.

You need to have an idea of what others are being paid for the same position, so using a Canada salary guide, you can figure out what the appropriate salary would be.

Also, a salary guide will tell you about trends in your industry. This can come in handy when planning for the future as you might be able to make some predictions based on current trends.

It can also be important to learn more about other ways of compensating your employees. For example, knowing about trends in benefits can help you make decisions about what type of benefits you can offer your employees and why they would be a good way of compensating them for their work.

Benefits are often considered part of someone’s salary, so making sure you are up to date on what types of benefits people want can help you choose packages that your employees will be happy with.

7 tips for setting salaries

You do not want to only rely on a salary guide when deciding what to pay your workers. It is important to keep certain things in mind, so we’ve gathered seven tips for you to use when setting salaries.

1. Create a detailed job description

When setting salaries, make sure that each job in your company has a detailed description. This will help you see the exact skill set each position needs which will help determine what type of compensation is needed. Jobs with more expertise might, for example, have a higher salary as they need more training or education.

This will also help you if you are looking to hire a new employee. The more detailed the job description, the easier it will be to justify the salary that you offer them.

Related: How to Write a Job Description

2. Benchmark

If you do not have access to the Canada salary guide, then you can benchmark salaries by checking job postings for the position you are setting a salary for. A lot of job posts will include salary ranges within the job description so you will be able to see the type of range others are paying.

This can also be helpful as job postings can also shed light on common benefits given to employees. If you are able to find a handful of job postings that have a list of different benefits, you can use these to help set how you will compensate your workers.

3. Create a salary structure

If your company doesn’t already have a salary structure, it might be a good time to create one. A salary structure will indicate what salary each position is given, which will help you determine what would be appropriate.

For example, you might have a salary for the office manager and then another salary for the assistant office manager. By setting a salary structure, you will have defined amounts that each position makes and if you have to hire someone new, what salary they will get will be all set out for you.

Something you might want to add to your salary structure is an upper and lower limit on how much you can pay each employee. By having these caps, you will have something to point to if ever questioned about a person’s salary.

4. Think total rewards

Remember that salary isn’t the only reward people get for working at your company. If your budget for salaries is tight, then make sure there are other types of rewards for your workers.

For example, if you are in retail, something most employees will love is an employee discount on your products. Not only does this give your workers an extra reason to work for you, but it also gives them hands-on experience using your products. That will make them better salespeople which is great for business.

Another way of rewarding your staff is by having a very nice atmosphere. Make the office a place where people want to hang out and this will keep your workers happy. Having cozy spaces or providing lunch and snacks for staff can go a long way to compensating your employees and making them want to work for you.

5. Be realistic

If you are a small or medium-sized business, make sure you are not trying to compete with larger companies when it comes to salary. It is unrealistic that a small or medium-sized business would be able to afford the same sort of salary as a mega-corporation so give yourself a break if the salary you offer has to be less than average. Go back up to the previous tip and remember that working for you is about the total package, not just the money.

6. Assess the company’s needs

Make sure that the company’s needs and the number of employees are equal. The last thing you want to do is hire too many people and then not have enough money after paying everyone to keep the place going.

If there are times during the day when your company is less busy, would you be able to get people to work a split shift or part-time? Make sure you are clear about what your company needs in terms of workers so that you do not accidentally spread yourself too thin.

7. Leverage your strengths

If you are unable to offer high salaries, what are some of the things you can offer your employees? A good example of this is commissions. Offering your workers commissions will get them to sell more products which is good for the company and it might even mean they are able to have a higher wage. Employees will be happy to have a lower salary if they are able to make extra money by working harder.

This doesn’t have to be restricted to those in retail. Companies can always offer bonuses or cash rewards for performance. Even something like giving a gift card can mean that you are compensating your staff for a job well done and could make all the difference in your budget.

By following these tips, you will be able to create your own salary guide for your company that is successful at keeping your employees happy.

Related: Small Business Payroll Checklist: What Employers Need to Know