Want to hire a new employee but don't know how to set their compensation? Focus on the rules for determining the salary, the terms of payment and transmission of the payslip.
Despite the many studies that show that salary is not the first criterion for choosing a candidate, it remains an important subject for both parties. How do you compensate employees well? Explanations and tips.
The salary is the consideration for the work provided by the employee. Some companies see it as a tool for measuring their own value in a competitive market.
There are several types of compensation:
The basic salary is set freely between the employer and the employee by the employment contract or by decision of the company.
The employer has the choice between several wage setting methods:
In any case, certain rules must be observed. First, the amount of the proposed remuneration must be equal to or greater than the minimum growth wage (SMIC) for people over 18, i.e. 10.15 euros gross per hour on the 1 st January 2020 or 1539.42 euros per month for 35 hours of work. Then, equal pay for men and women must be respected. Finally, an employee must not be discriminated against, in particular for his union commitments.
During the contract, the salary may be reviewed by the employer. It should be noted that the employee is entitled to refuse a reduction in remuneration without this constituting a fault. On the other hand, it is a reason for dismissal.
The employer, to set the remuneration of an employee, can rely on the following points:
Most national compensation studies show that the first criterion for determining a salary is the level of responsibility of the position, which replaces seniority. Thus, the more the employee increases in responsibility, the more the remuneration which is offered to him must be high.
The level of responsibility is defined by the status (executive or non-executive), by the autonomy of the position, the allocation of responsibility for the turnover, the presence or absence of management and the complexity of the missions related to the job. To better determine the level of responsibility of a position, it is advisable to consult the conventional reference grid.
The rarer and more sought-after a skill is, the more expensive it is. Graduates or experienced candidates must therefore benefit from a remuneration adapted to their profile. It is up to the company to estimate the financial efforts it is willing to make to secure the services of a qualified employee and/or one with many years of experience.
It is important to ensure that good internal equity is maintained. Indeed, before getting on the level of the market, it is necessary to ensure the consistency of internal remuneration levels. If significant differences are observed by employees, the impact on the organization will be much more deleterious than if differences are observed compared to a competing company. These may find more acceptable explanations (size of the company, economic performance, strategic choice, etc.).
Employees can be paid by cheque, bank transfer or postal order. The salary can be given in cash if it does not exceed 1,500 euros net per month. In some cases, it can be paid as a universal service employment voucher or an associative employment voucher.
Employees must be paid monthly on a fixed date. They must receive their payslips by hand, by post or electronically. The particulars that must appear on this document are set by law. As a reminder, since the 1 st January 2018, the payslip has changed to be more readable and educational. It is now structured by position.
To conclude, the determination of an employee's remuneration depends on several criteria:his profile (diplomas, experience), the level of responsibility of the position, the remuneration grid set up internally. To avoid any litigation before the Labor Court, the employer must be particularly vigilant about compliance with the legal minimum wage (SMIC) and the conventional minimum wage. Indeed, it is not possible to remunerate an employee below certain thresholds set by law and the collective agreement. However, it is possible to offer a higher remuneration, negotiated with the employee.
