Q: I'm looking for information to guide me in setting
salaries within my company, especially for my controller (who is a
CPA) and for other top-level managers. Is there a formula I should
use to determine salary amounts? Also, should raises and year-end
bonuses be calculated as a percentage of annual salaries? My
company has grown to $5 million plus in the last six years. I
employ 25 to 30 people. I have no formal education in business. Any
advice would be appreciated.
Tod Swank
Via the Internet
Content Continues Below
A: Max Messmer is chairman and CEO of Robert Half
International Inc., a staffing firm specializing in the placement
of accounting, finance and information technology professionals,
and parent company of Accountemps, RHI Consulting and RHI
Management Resources. Messmer is also the author of several
staffing and career-guidance books:
While there is no formula that will provide you with the ideal
salary for each position at your company, there are certainly
appropriate ranges. Some of the key sources for determining
suitable salary ranges for your employees are: 1) classified ad
listings for specific positions, both in your daily newspaper and
on the Internet; 2) professional and trade organizations for the
specific fields in which you are hiring (most organizations
regularly publish salary data); 3) human resources consultants; and
4) specialized recruiters in the appropriate fields.
To address your question on the salary for your controller, our
1997 Robert Half and Accountemps Salary Guide, which is based
primarily on actual job orders filled in our U.S. offices, states
that a controller with a CPA designation at a firm of your size
generally receives an average annual starting salary of $51,700 to
$67,925. This is a nationwide average. When setting your own
ranges, keep in mind such factors as the cost of living in your
area and the availability of qualified candidates. Accountants with
a CPA designation can often command as much as 10 percent to 15
percent more than their nonCPA counterparts. Our Salary Guide lists
ranges for positions in accounting, finance, banking and
information technology. You can order a complimentary copy of the
guide on our Web site at www.rhii.com or
by calling (800) 803-8367.
Generally speaking, raises and bonuses are determined as a
percentage of annual salary. Traditionally, the standard
calculation for raises has been based on company performance
combined with Consumer Price Index increases, which nationally have
averaged about 3 percent in the past five years. However, in the
current record-low unemployment environment, you may well have to
offer more generous raises to remain competitive.
When deciding on the appropriate mix of salary increases and
bonuses, much depends on your corporate philosophy and goals. A
growing number of employers are increasing the portion of
compensation that is performance-based, such as bonuses. Through
this approach, companies can more directly and immediately reward
outstanding achievement. Many firms are basing bonuses on the
performance of both the company and the employee to encourage both
personal and team accomplishments. And while we're on the topic
of incentives, companies of all sizes (including privately held
ones) are increasingly offering stock options to their
employees.
Your company may be reaching the point where you require an
experienced human resources manager to establish compensation and
benefits policies, as well as oversee other personnel issues. For
example, in addition to considering stock options, you may want to
set up a 401(k) or pension plan for your employees, or a
profit-sharing plan.
While no one can discount the importance of financial rewards,
keep in mind that today's job candidates are more concerned
with the corporate environment and quality-of-life issues than ever
before. In a recent executive survey conducted by Robert Half
International, corporate culture rivaled employee benefits in
importance for candidates during job interviews. Many of our
small-business clients use this trend as a competitive advantage,
offering such perks as flexible work schedules, casual dress days,
additional vacation time or telecommuting opportunities. The costs
of this approach are minimal, particularly when compared to the
value-added benefits of improved recruitment, productivity and
retention.
Regardless of the monetary and nonmonetary ways you compensate
your employees, creating an employee-friendly environment and
determining competitive compensation ranges take time. Both will
require being flexible and adaptable to changing workplace trends
and local conditions. The investment is worth it--the difference
between a good company and a great company is its people.
Q: My canned, homemade pickled asparagus recently won
"Best of Show" at the San Bernardino County Fair in
California. I'd like to sell it at the spring Asparagus
Festival in Stockton and to local farmer's markets. But a
simple request for a permit has turned into an endless (and
expensive) trail of forms, requests and referrals. I want to market
my asparagus on a very small scale. Help!
Mary Miller
Apple Valley, CA
A: Marsha A. Echols is the Washington, DC, counsel to the
National Association for the Specialty Food Trade Inc.
(NASFT):
Though taking your creation from kitchen to market can be a
rewarding venture, your success will depend on more than your
recipe. You must pay attention to seemingly extraneous matters just
to sell a few jars of your prized pickled asparagus.
First, what's your goal? Are you sure you'll always be
satisfied with farmer's market sales? If the people at
festivals and local markets are excited about your product, will
you want to start selling statewide? Outside the state? Actually,
it won't take much more effort to meet requirements for markets
beyond your state, which involves following federal trademark and
labeling requirements and creating a business structure that
protects your personal assets. You must know how to ensure your
product is safe to eat, let consumers know exactly what they're
getting and protect yourself if a consumer claims your food caused
an illness. Try taking the necessary steps in stages:
- Trademarking. Some experienced food entrepreneurs think the
first step should be to spend the few hundred dollars required to
register your trademark, either with the U.S. Patent and Trademark
Office in Washington, DC, or at the state level for statewide
trademark protection. Why? If you sell your pickled asparagus under
the name "Best of Show" at farmer's markets for three
years and later decide to sell in a wider or interstate market,
someone else might already have the right to that name.
- Health and safety. Many city, county and state governments
require a license, permit or certificate to ensure "good
manufacturing practices" where kitchen equipment and
configuration standards are followed. Most jurisdictions prohibit
the use of a home kitchen for preparing foods for public sale or
consumption. That's why many food producers use a
"co-packer" to produce and pack for them, or they locate
an approved co-op kitchen facility, perhaps at a local
university.
Taking these steps is important for protecting yourself against
liability claims and to obtain product liability insurance. Though
not always required by local, state or federal governments,
liability insurance is often carried by reputable food
producers.
- Food labeling. The label informs the consumer about the
manufacturer, the product, possible allergens and, if you choose,
the product's nutritional value. However simple the label, it
must include your name and address, product trade name and common
name, ingredients, and net weight. You can add nutrition labeling
later.
- Resources. Organizations such as the California Specialty Foods
Association (800-774-2732) and the Food and Libations Association
of Virginia (757-565-4144) publish valuable information and have
members who can answer your questions. Local agricultural and
business schools may have business development centers that can
assist you. Also, there are such product-specific trade
associations as Pickle Packers International (630-584-8950) that
may be aware of issues concerning common names, ingredient
listings, health and safety. Your state's department of
agriculture can explain any special rules, especially any reduced
requirements for selling at farmer's markets.
If you decide to sell your product nationally, the NASFT
(212-482-6440) offers information on food labeling, its Showcase
magazine containing a "Food Laws" column, as well as
marketing opportunities through its Fancy Food Shows. A search for
nongovernment organizations may turn up additional resources.
Page 1 |
2 