Tag: politics

When we opened our quick-serve pizza restaurant, we had to hire and train our team first. We paid minimum wage to teenagers seeking their first job, about 10% more to older teens with some experience, and 25-50% above minimum wage to adults with significant prior experience. It was a valuable early lesson in balancing what the business could afford with what it takes to attract good people.

One of the most common goals I hear from small business owners is the desire to create good-paying jobs. That’s a noble aim, and I respect it deeply. The Bible is clear on the importance of paying people fairly and on time. In Luke 10:7, Jesus tells His disciples, “The laborer is worthy of his wages.”

While Scripture instructs us to pay what is due and to do so promptly, it doesn’t provide specific guidance on determining a worker’s exact worth. That decision often feels challenging-especially when you’re hiring your first employee.

Here are practical, step-by-step guidelines to help you determine a fair and sustainable wage or salary.

Steps to Determine What to Pay an Employee

1. Define the job clearly.

List every task the employee will perform. What skills, education, certifications, or experience are truly required? The greater the requirements, the higher the pay should typically be.

2. Consider the working conditions.

Will the job involve difficult weather, unpleasant tasks, physical demands, or risk of injury? Jobs with tougher conditions usually command higher compensation to attract reliable candidates.

3. Research market rates.

Look at what other companies in your area are paying for similar roles. Competitive pay helps you attract and retain qualified people. You can find good data on sites like Indeed, Glassdoor, or your local Chamber of Commerce.

4. Review industry standards.

Industry reports can show average salaries and what percentage of revenue is typically spent on payroll. Keep in mind that national averages may not fully reflect your local cost of living—wages are often higher in high-cost areas and lower in others.

5. Determine what you can realistically afford.

Calculate how much additional revenue the new employee is expected to generate. Factor this into your budget to ensure the position is financially sustainable before you make an offer.

6. Factor in your local cost of living.

Consider the minimum salary that would allow an employee to maintain a reasonable quality of life in your area. If your industry traditionally pays lower wages, make sure your offer is at least above both federal and state minimum wage requirements.

7. Calculate the total cost of employment.

Look beyond the base wage. Include:

• Employer portions of Social Security and Medicare
• Workers’ compensation insurance
• Health insurance contributions
• Retirement plan matches
• Any other benefits

Note that Paid Time Off (PTO) doesn’t usually create direct extra expense unless you need to bring in coverage.

8. Set a salary range and negotiate thoughtfully.

Establish a realistic pay range based on the factors above. Offer higher within that range for candidates who can contribute immediately, and lower for those who will need more training.

Final Thoughts

Taking the time to follow these steps will help you offer wages that are fair, competitive, and sustainable for your business. If you offer is too low, you’ll struggle to attract good candidates. If it’s too high for your business to support long-term, you risk financial strain or having to make difficult changes later.

The goal is to prayerfully find the balance-paying a wage that honors the employee, supports your small business, and allows both you and your team to thrive.

When you get this right, you don’t just fill a position. You invest in a person who can help your business grow while creating meaningful work in your community.