Common Market Levels of Base Salaries

The organization can choose many option, when it decides about the position of the base salaries on the job market. The market is full of different organizations, which are in different stage of the organizational development and the organization has to select the correct option to attract and retain employees.

The organizations in the initial stage of the organizational development have to choose the base salary policy above the market median. The organization needs to attract the best talents on the market, who are used to work hard and they innovate their every business day.

The stable and mature organizations pay on the market median. They provide their employees with the stable environment and the security. The organizations have a good career development plan and they are not willing to fight on the job market by offering excellent salary packages. The organizations know, they can lose a good employee, but they have a plan, who can be the next guy on the job positions. These companies enjoy a good position on the job market and they pay enough to keep employees happy.

The declining organizations pay lower than the median base salary as they usually lost their best employees. They have no resources to keep high personnel costs and they have to optimize the salaries to funds available. The organization feels its end and the salaries are fully complaint with the feeling. The employees are not attacked by the head hunters as the employees are not valued by other organizations on the market.