How to pay salary

Tweet on Twitter What can you do if your employer does not pay your salary or infinitely delays it? It is quite common in India for employers to deny salary to employees, especially at the time of firing them. In reality, there are several things an employee can do that can land an employer in real trouble. We decided to share our best strategies for benefit of all Indians.

How to pay salary

Employee Benefits Finding the right balance between basic pay and commission is crucial to rewarding salespeople, says Tom Washington If you have ever had dealings with a persuasive, perhaps forceful, salesperson, the chances are they were thinking more about the money they stood to earn from the sale than finding the right deal for you.

But for many employers, having an engaged and motivated sales force is vital. Indeed, such staff are the lifeblood of some industries and the single most important form of creating income.

But the question is, how does an organisation keep this group of typically money-driven operators performing for the good of the company, not just the size of their pay cheque?

How to pay salary

The obvious answer is commission, a form of variable How to pay salary by which staff earn a cut of the income they create for their employer. Transparent Structure As in any profession, there can be good and bad salespeople, and commission is a common way to reward top performers.

Know your value to the company.

Commission leads to a transparent reward structure based on success. If staff hit targets, they get the reward; if they miss them, they do not. Experts say the simplicity of commission suits the type of person working in sales. If you start rolling out complicated measures of performance, they do not like it.

Reilly says this form of reward gives individuals impetus to maximise their efforts around the most profitable tasks. An employee can reap the benefits of short-term success, but perhaps not comply with the long-term ideals of the organisation.

In the past, some commission payments encouraged inappropriate sales, such as mortgage endowments to people who could not afford them. Employers are now trying to change the type of workforce from salesmen to much more professional advisers by rewarding them through a high proportion of base pay.

Higher base pay shifts the emphasis from such short-term thinking. In fact, many target-driven staff would prefer the security of a higher proportion of guaranteed income. The John Lewis Partnership, for example, rewards employees with a collective bonus pot at the end of the year shared between all staff, rather than rewarding individual performance.

But base pay also has its pitfalls. Employers are unlikely to distinguish significantly between the best performers and the mediocre by setting pay differentials aggressively.

When earnings cease to be based purely on results, employers must take other factors into account, such as customer service and best practice. The salesforce may not see this as a fair means of assessment. Does the manager know enough about what goes on in the sales context?

This is more complex and harder to judge, and requires better management. The great advantage of commission is that it is for a fixed period, and targets and rates can be adjusted as needed. But base pay traditionally rises each year and staff expect it to at least stay the same.

Pay rates are also complicated by external factors, such as what the market is paying and the cost of living.

How to pay salary

For many organisations, commission can act as a safety valve because pay costs are adjusted according to revenue. Mark Thompson, associate director at Hay Group, says: Commission is not foolproof, but it does enable employers to get rid of the fixed cost of base pay, which has knock-on effects on pension contributions.

Steve Watson, director at Rewardworks, says communication around any changes to pay structure is key. Switching from commission to salary is probably good news for the majority because they are likely to get the same sort of money but be less stressed.

High earners may lose out, be fed up and may leave, but that is not the kind of person employers are now looking for. But, with pay freezes becoming more prevalent, commission remains a key driver. A service of YellowBrix, Inc.When you get pay right, you attract and retain the best talent.

Converting to Monthly Salary. If your job offer states your salary as an annual amount but you'll be paid monthly, simply divide your annual salary by 12 to calculate your monthly salary. For example, if your annual salary is $72,, divide $72, by 12 to find that you'll be paid $6, per month.

Jun 24,  · As a business owner, you can choose to pay yourself a salary, take owner draws from your business- or both. Learn why this decision has a big impact on your personal tax liability and your ability to manage the business moving forward.

Make It Annual

Use these tips to pay yourself a salary or a draw/5(). (tr) to pay a salary to; Show More. Word Origin for salary. C from Anglo-Norman salarie, from Latin salārium the sum given to Roman soldiers to buy salt, from sal salt.

Pay rates are also complicated by external factors, such as what the market is paying and the cost of living. For many organisations, commission can act as a safety valve because pay costs are adjusted according to revenue.

If you are paid on an hourly basis, you need to calculate your annual salary based on the number of hours you work in a year. For example, if you work 40 hours per week you would multiply 40 by 52 to get 2, annual hours.

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