Deciding pay rate

Assuming no contractual parameters exist, such as union contracts, for example, several factors influence an employee's pay rate. This include:

- Competitive pay: Evaluating what other firms pay for similar jobs.

- Minimum wage: Federal and state laws may define a minimum pay rate for all employees.

- Experience: Experience costs more.

- Job knowledge or skills: You'll pay more for greater job knowledge or skills.

- Geography: Regional competition and cost of living will influence pay rates.

- Industry: Pay rates may be influenced by industry standards.