One of the biggest tips you see when we talk about hiring in today’s environment is “pay a living wage”.
But what does that mean? And how does that impact your finances?
First let’s talk about living wage. MIT has a wonderful calculator you can access here: https://livingwage.mit.edu/ in order to see what the living wage for each of your employees is at. They break it down by county as well as number of adults and children in the household. For instance in my county, Prince William County Virginia, the living wage for 1 adult with no children is $22.98 but 1 adult with 3 children is $67.40 but minimum wage in our area is only $11. So while this is higher than most, it is still half of what a single adult needs to live on.
Once you have found the living wage, it’s time to think about your employees. How much education are they expected to have? Are they full-time? Part-time? Does the position lend itself to a certain age demographic?
A part-time position meant for high school students saving up for college can pay around the 1 adult, no children range for your area while a full-time position that requires a PHD is going to pay more. Or you might take a page out of Dan Price’s book and pay all of your employees the same, highest of the livable range, salary.
Once you decide on the proper number that accurately reflects your employee’s worth to you, NOW it’s time to look at your books.
At the salary you have chosen, do you have the cash flow to support it? You never want to hire an employee if you do not have the cash flow to support their salary. If you don’t have the cash flow to pay an employee what they deserve consider the following alternatives:
- Time and a half for a few hours for existing employees to cover the gaps
- A part-time position instead of a full-time position
- A virtual assistant for a few hours a month through an agency
- Make financial changes to increase cash flow
- Hire on a set contract basis so you both know the end date going in
How can Assemblage help with all of this?
We can help you figure out your books so you know exactly how much you have to spend on your employees!
We can help you figure out what business changes you can make to increase cash flow!
We can help you find employees that work best for your business model including Contract-to-Hire, Long-term & Short-term Projects, and Direct Placement.
We can help you finesse your business strategy so you can work effectively and efficiently with just the right amount of personnel so you aren’t paying for people you don’t need and can pay the people you do have a competitive wage.
There’s no need to be stuck with a “Hiring” sign for long, contact Assemblage LLC to get your team Assembled. https://assemblagellc.com/get-on-our-schedule