What salary do I pay my employees when my company size is 3M not 3Billion?

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Comments (3)

Jonathan in Southampton, Pennsylvania

83 months ago

Hello:
I've worked for companies that were 20 million and 6 billion. I'm currently creating and or advising the upper management of a 3 million dollar company on their pay structure. So if a Business Development person is making 75-95K in a 40million dollar company how do I translate that to a Business Development person now in a 3 million dollar company.

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John Williams in Williamsburg, Virginia

83 months ago

Jonathan:

I do not believe you can think in those terms; only in terms of skills you are getting. If you need a person with certain skills, and the market at a $6 billion company is $150,000, to get these skills you are going to probably offer a combination of salary, benefits, bonus and profit participation that is slightly more than that to compensate the employee for the greater risk of working for a small start up as opposed to a big "secure" company.

From the potential employee's point of view, economic theory says it would be irrational for that person to accept less in a free market

Good luck with this

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Bretlee in Des Moines, Iowa

68 months ago

According to this situation you should give salary depend on performance basis.

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