Why you pay your staff whatyou do? Is it too high, too low or just right for the market? Did you do anyresearch before setting pay levels, or did you just guess? Setting acompensation level is difficult but important because that base level willalways be with the employee as long as he or she works for your dealership.

Here are tips to help youdetermine fair compensation:

• Check salary surveysprovided by the U.S. Bureau of Labor Statistics. These surveys have limitedvalue because wages vary widely between regions.

• Compare salaries offeredby similar companies in your region. You can determine these with some degreeof accuracy by networking with managers at other tire or auto centers.

• If you’re uncertain aboutwhat to offer a prospect, propose a 5%-10% increase over their current wage, aslong as it’s in line with what you are paying others for similar jobs.

• Consider compensationbased more on the skill of the potential employee than on a salary that wouldbe offered by others. If you want to land that top-flight applicant, offer alittle more than they would make elsewhere.

• Offer incentives –year-end bonuses, profit sharing, etc. – which can be extremely attractive tonew employees and bring them into the team spirit of the company. But remember,if you offer such incentives to one employee, you have to offer it to all.

– Source: Tire ReviewBusiness Toolbox