Determine Starting Salaries

• 1). Research your industry's compensation averages relative to your location and company size. Location will reflect the cost of living for the area. If you are not hiring at a competitive salary, then you could risk losing potential new hires to other companies.
  
  
• 2). Determine what it takes to do the position you are hiring for. What are the minimum education and experience requirements? Is it entry level or mid-career? The more it requires, the more it should pay.
  
  
• 3). Review the new hire's experience compared with those already in your company. Respect seniority of those already in your company, but pay your new hire appropriately.
  
  
• 4). Review the benefits that are offered with salary positions--this could impact whether a potential employee will work for you or the competition.