Fashion Career Advice: Pay

Published, 4 years ago

More fact. People, almost universally do not work just for the money. Yes it’s important and some people have greater need for money than others but you won’t attract and keep people simply by throwing money at them. And if you do it for one, you will end up having to do it for everyone because regardless of you saying pay is “confidential” that’s crap; its virtually public domain so be really careful what precedent you set. But how do you decide what to pay. A few approaches:

· Egalitarian, everyone in a given role or at a given level is paid the same. Easy to administer, apparently fair and equitable, easy to defend. But is everyone equal?

· Everyone is an individual with individual needs and you pay according to what they say they need. So everyone is happy because they got what they asked for, but of course as soon as Bill sees what Sally is earning all thoughts of being happy go out the window and that wonderfully subversive notion of “relative deprivation” sets in and a mad scramble ensues to get paid as much as the best paid person.

· Salary banding and performance pay. Now we are getting a bit sophisticated. To set a valid salary band you need good market data and to move salaries on the basis of performance you need a performance management system that is robust enough to stand up to arguments and managed by managers strong enough to apply the right judgements. And before you even think it; that is not about a huge number of forms to be completed. It’s all about being clear about what somebody is being measured against and having regular conversations to help them meet those measures and providing support if they start to slip. On balance this is the most rational approach

· Low base and high variable pay. This relies on very good performance data that can be supported by results which is why it tends to apply in sales environments. You also need to be sure when you are hiring that people truly sign up to performance by results as a concept.

· Bend over, place your head where the sun doesn’t shine and hope for the best. Although of dubious physiological feasibility this is sadly the approach adopted by many organisations who then wonder why their pay bill has gone completely out of control.

Whatever approach you adopt needs to be consistent with the values and nature of the business. Sadly there isn’t a one size fits all model but whatever you adopt needs to be applied with rigour and fairness. Fail those tests and you WILL get runaway salary inflation.

Click here to speak to Andy Gillham about Pay

Liked what you read? Share the article!

Share on facebook
Share on twitter
Share on pocket
Share on whatsapp
Share on linkedin

Get Noticed with Fashion Rider.

Get the recognition you deserve. Portfolio, Jobs, Social Media promotion and much more. All in one membership. 

You might also like

Fashion and the end of the Brexit transition period

19th October 2020 Fashion and the end of the Brexit transition period – points to consider as we approach 31 December 2020 With less than …

Read More

How Freelancers Can Thrive With a Strong Digital Presence

Freelancer? Working from home or for yourself? In need of a gentle reminder? Whatever your business and whatever your industry; a strong digital presence has …

Read More

How To Grow Your Social Media

In most industries social media is used on a daily basis, particularly in the fashion industry. Making your posts gain traction and high quality leads …

Read More

Things to consider in a Fashion Marketing Strategy

Having a marketing strategy that is consistent and is relevant to your customer base is so important when trying to grow a business. You need …

Read More

Fashion Advice: Funding for Fashion Professionals

Launching a business can be a scary yet exciting time.  You have your business plan and strategy set, and you have a clear vision as …

Read More

Fashion Industry Awareness

Whether you are just starting or have been working in the fashion industry for a while, you already know that watching out for the latest …

Read More

Top 8 Fashion Tips for Working Women Who Want To Break That Glass Ceiling

As a woman trying to make it in the cutthroat competitive working environment that is the corporate world, you have your work cut out for …

Read More

Fashion Professionals: Do you know your taxes?

Running your own business, big or small, involves taking care of your tax returns.  Knowing your taxes and in particular small business taxes are vital. …

Read More

Fashion Professionals: Are you using the right accounting software for your business?

Accounting and indeed accounting software can be a minefield if you’re not doing it day in and day out. Accounting isn’t always everyone’s strong point …

Read More

Subscribe to our newsletter today!

FASHIONSUPPORTSUCCESS

Promoting our members throughout the industry, providing exciting job opportunities and supporting them with increased visibility and valuable advice to ensure their journey is a long and successful one.

Fashion Rider
First Floor, Swan Buildings, 20 Swan St, Manchester M4 5JW

Subscribe to our newsletter today!

© 2020 Fashion Rider UK

We use cookies to offer you a better experience and analyze site traffic. By continuing, you consent to the use of the cookies following our privacy policy. You may choose to opt-out through our privacy policy page.