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How to Create a Salary Proposal

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How should i answer about flexibility for salary requirements, how to respond to an e-mail for desired salary.

• How to List Salary in a Job Posting
• How to Negotiate a Salary Based on the Salary Range

Once you're in the final stages of the hiring process for your dream job, one of the most challenging steps in this process could be justifying your worth, or convincing the hiring committee that you deserve the salary that you want. Research is fundamental to creating a salary proposal, but confidence in your skills, abilities, experience and capabilities is the factor that will benefit you throughout the process.

Define the Purpose of a Salary Proposal

When you receive a job offer, your future employer will likely have a salary range they have already decided is appropriate for your new position. The salary range may be based on previous employees' earnings or it might be a generic range that the company and its HR leadership feel is sufficient compensation for the position they offer to you. In this case, creating your own salary proposal could be instrumental in helping the company restructure its compensation practices, or at the very least, revisiting the compensation level for your position.

Alternatively, creating a salary proposal might be your counterproposal to a salary offer that's on the table. If it's a job you've set your sights on for quite some time, or an organization you have wanted to join but never had the opportunity, and you're willing to put in the extra work, creating a salary proposal letter to the employer might further illustrate why you're the right person for the job.

Set Up a Salary Proposal Template

Unless you're creating a salary proposal letter or email for several different jobs and companies, you probably don't need to create a compensation proposal template. Although if you embark on a job search that entails numerous interviews and you intend to compare the salary expectations or offers for all the positions you're considering, a salary proposal template is a useful tool for organizing the last stages of your job search. Ideally, a pay proposal template would include the employer's name, location, and contact information for HR as well as the hiring manager.

The position or job title, a brief job description, including the number of direct reports or team members, also is helpful information for a well-thought-out salary proposal template. Insert columns for the employer's proposed salary level, your salary expectation and researched salary information and sources.

Compare Similar Job Titles

Conducting a broad search for positions with the same or similar job titles is the first step in creating a salary proposal. Job titles can vary, particularly if you're comparing private sector to public sector roles. For example, a junior accountant for a mid-size accounting firm might be considered Accountant I within state government, and a Management Analyst for the federal government might be the equivalent of an executive assistant with a law firm. Your research will need to include a cursory view of the job titles, duties and responsibilities to find equivalent salaries.

Research Salary Tables

The U.S. Office of Personnel Management (OPM) publishes its General Schedule (GS) Local Pay Tables , which contains salaries for every level – except senior executive level and political appointees – in the federal system. The OPM salary tables also include differentials for various localities in the U.S. Another federal resource is the U.S. Bureau of Labor Statistics Occupational Outlook Handbook; it contains average wages and median wages for thousands of occupations.

Industry-specific professional associations often publish salary information, although you might need to be a member to access complete salary data and information on comparable benefits and total compensation plans for people in your field. For example, the Society for Human Resource Management offers to members the SHRM Compensation Data Center, which contains information about salaries and compensation packages for numerous occupations – not just HR-related jobs. In addition, there are online calculators that enable comparisons of jobs in different locales. If you are moving from, say, Kansas City to Atlanta, and are staying in the same field, you can obtain salary and cost-of-living information that you can present to a prospective employer.

Present Your Proposal

The foundation of a salary proposal letter to an employer is the combination of your research, qualifications and experience, and if applicable, your education and professional certifications. A salary proposal letter – or, even a salary proposal email – is, ideally, a formal proposal that sets out your position and the reasons for your salary expectations.

Avoid presenting your salary expectation as a precise number, such as $101,450 per year. Instead, create a proposal that indicates the salary range that you deem acceptable. For example, if you earn $90,000 a year and you are seeking an increase, determine the lowest percentage increase that you will accept, along with the increase you would like to have. If you can live with a five percent increase, but would love to make 15 percent more, indicate the salary you would accept is between $94,500 and $103,500 . Or, simply between $95,000 and $104,000 .

• U.S. Office of Personnel Management: Pay & Leave, Salaries & Wages
• U.S. Bureau of Labor Statistics: Occupational Outlook Handbook
• Society for Human Resource Management: SHRM Membership

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Ruth resides in the nation's capital, Washington, D.C.

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Proposal Template AI

Free proposal templates in word, powerpoint, pdf and more

Salary Proposal Template: A Comprehensive Guide + Free Template Download + How to Write it

Crafting the perfect salary proposal: a comprehensive guide.

As a professional in the workforce, one of the most crucial elements of your career is discussing and negotiating your salary. It’s important to have a solid understanding of your worth and be able to effectively communicate it to your employer. This is where a salary proposal template comes in handy. Unlike a standard proposal, a salary proposal template is specifically designed to address and outline your financial requirements and expectations. In this article, we’ll explore the importance of a salary proposal template and how it differs from a standard proposal.

Salary Proposal Template

Introduction

My advice on the introduction section is to start with a brief overview of the purpose of the proposal. Mention the position you are applying for and a summary of your qualifications and experience. This will help the reader understand the context of your salary proposal.

Current Salary and Benefits

In this section, you can include details about your current salary, benefits, and any additional perks that you receive from your current employer. It’s important to provide a clear breakdown of your current compensation package to give the reader a comprehensive understanding of your financial situation.

Example: Current Base Salary: $60,000 per year Health Insurance: Fully covered by employer Retirement Benefits: 401(k) matching up to 5%

Salary Research and Market Data

Researching the market data for the position you are applying for is crucial to support your salary proposal. Provide information about the average salary range for similar positions in your industry and location. This will give the reader a benchmark to compare your proposal against.

Example: According to research from reputable sources such as Glassdoor and Payscale, the average salary for a [Job Title] in [Location] ranges from $50,000 to $75,000 annually.

Proposed Salary and Benefits Package

This section is where you outline your proposed salary and benefits package. Be sure to justify your proposal based on your qualifications, experience, and the market data you have researched. You can also include any additional perks or benefits that you are seeking.

Example: Proposed Base Salary: $70,000 per year Additional Benefits: Flexible work schedule, annual performance bonus, professional development stipend

In the conclusion, you can summarize your proposal and express your enthusiasm for the opportunity. You can also reiterate your qualifications and why you believe your proposed salary is fair and competitive.

By following these detailed examples, you can create a comprehensive salary proposal template that effectively communicates your value to potential employers. Remember to customize the template to fit your specific situation and always be transparent and honest in your proposals. Good luck!

Download free Salary Proposal Template in Word DocX, Powerpoint PPTX, and PDF. We included Salary Proposal Template examples as well.

Download Free Salary Proposal Template PDF and Examples Download Free Salary Proposal Template Word Document

Download Free Salary Proposal Template Powerpoint

Q: What is a salary proposal template? A: A salary proposal template is a document used to outline a proposed salary for a job position or promotion within a company.

Q: How do I use a salary proposal template? A: To use a salary proposal template, simply fill in the necessary information such as the job title, proposed salary amount, and rationale for the proposed salary.

Q: What should be included in a salary proposal template? A: A salary proposal template should include the employee’s name, job title, current salary, proposed salary, reasoning for the proposed increase, and any additional benefits or incentives being requested.

Q: Is it necessary to use a salary proposal template? A: While it is not necessary to use a template, it can help streamline the process and ensure all necessary information is included in the proposal.

Q: Can I negotiate using a salary proposal template? A: Yes, a salary proposal template can be used as a starting point for negotiations with an employer.

Q: How should I present my salary proposal to my employer? A: It is generally best to present the salary proposal in person, either during a scheduled meeting with your manager or through a formal written request.

Q: What if my employer rejects my salary proposal? A: If your employer rejects your salary proposal, ask for feedback on why it was rejected and consider revising and resubmitting the proposal.

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How to Create a Desirable Compensation Plan

A competitive compensation plan is necessary to attract and retain top talent.

Table of Contents

A robust compensation plan is crucial for attracting and keeping a quality team. A successful compensation strategy incorporates multiple elements beyond salary, including flexibility, employee benefits, paid time off (PTO) and much more. 

We’ll detail compensation plan elements and explain how to develop and implement a competitive compensation plan that can boost recruitment and retention efforts while ensuring equity and fairness. 

What is a compensation plan?

A compensation plan, also called a “total compensation plan,” encompasses all of the compensatory components of a company’s strategy: employees’ wages, salaries, benefits and total payment terms. Employee compensation plans also include raise schedules, fringe benefits, union perks and employer-provided vendor discounts.

A strategically designed compensation philosophy that is kept current, relevant and compliant supports critical components of your business, including the following:

• Strategic plans
• Budgeting and business goals
• Industry-competitive challenges
• Operating needs
• Total reward strategies that support retention of the company’s top talent

When your business maintains a robust compensation program, you’ll enjoy the following benefits: 

• A compensation plan can support your business strategy. A desirable compensation plan describes how your organization’s pay and compensation philosophies support your business strategy, industry competitiveness, operating objectives and staff needs.
• A compensation plan can help with recruitment. A desirable compensation plan helps your business attract and retain top talent with the in-demand career skills that can take your business to the next level.
• A compensation plan can boost employee motivation. A desirable compensation plan motivates employees to perform at high levels and exceed goals.
• A compensation plan can keep your business competitive. A desirable compensation plan helps keep your business competitive in the marketplace in terms of base pay, incentives, total compensation and benefits opportunities.

Why do companies need a compensation plan?

Companies need a thoughtful compensation program to stay competitive in their industry and attract and retain top talent. Employers that determine salaries and benefits without regard for industry data will slowly lose the talent game to competitors. Additionally, managing a workforce without a predetermined business budget is risky. Compensation programs allow for consistent and predictable budgeting and planning.

According to Payscale’s 2023 Compensation Best Practices Report, job seekers have the upper hand in today’s job market. To attract and retain the best workers, more organizations are focusing on building compensation packages that will help recruit employees in a tough labor market and keep them engaged and motivated. 

What is direct and indirect compensation?

There are two types of foundational compensation:

• Direct compensation: Direct compensation includes salary, hourly pay, commissions and bonus pay.
• Indirect compensation: Indirect compensation includes various benefits.

We’ll take a closer look at direct and indirect compensation.  

4 types of direct compensation

Most employers choose one type of direct compensation and stick to it. However, you can use various methods to compensate employees for their work. The exception is bonus pay, which is meant to be an addition to regular pay based on employee or company performance.

• Salary: The most traditional form of salary is a monetary amount scheduled over one year. How often salaried employees are paid is another part of the compensation strategy. However, businesses typically pay their employees every two weeks. Salary is the most common method of direct compensation for exempt employees . An exempt employee is not eligible for overtime pay . They receive a base salary for their work instead of being paid an hourly rate; employers pay exempt employees for their job instead of the number of hours they work.
• Hourly pay: Nonexempt employees are typically paid an hourly rate and are eligible for overtime pay; they’re guaranteed at least minimum wage . When an employee works over 40 hours in a workweek, their employer must pay them overtime. The hourly pay rate is typically a predetermined dollar amount per work hour. Hourly employees generally keep a timecard or clock in and out to begin and end their work shifts. During times of slow or reduced work or budget changes, nonexempt employees might not work as many hours as they did in previous weeks. Thus, a routine number of hours worked per pay period is not guaranteed.
• Commission: Commission is when compensation is based on volume, production or a predefined performance level. This compensation type is also known as “piecework” or “piecemeal.” Paid commissions are usually based on the volume of services performed or products made, or are structured around sales volume. For example, a real estate agent who sells a house will receive compensation from that sale. It doesn’t matter how long or what work activities were necessary to sell the house, only that it was sold.
• Bonus pay: Bonuses are used to motivate employees or increase their overall performance. Bonuses are a variable compensation method that’s commonly associated with sales professionals, who tend to be salaried or exempt personnel. For example, if a sales professional exceeds their quarterly target by a specific dollar amount based on a predetermined matrix, they will receive a commensurate bonus. Bonuses can also be paid for company performance or when hard-to-fill positions are filled with employees with unique or highly sought-after skills or experience. Holiday bonuses are another popular type of bonus.

Types of indirect compensation

Indirect compensation can be any fringe benefit employers offer. Most commonly, it refers to the various insurance types employers offer in their employee benefits plans . For example, the employer may offer health insurance , dental insurance, life insurance, short- and long-term disability insurance and vision insurance. Employee retirement plans , like 401(k) plans , are another common form of indirect compensation.

Equity-based programs are another compensation offering. However, these aren’t typically offered within the small business realm. Equity-based compensation is generally some sort of share or stock in the company.

Other examples of indirect compensation include the following:

• Disability income protection
• Vacation days 
• Paid holidays
• Flexible work policies
• Other forms of retirement benefits
• Opportunities for advancement and career growth
• Student loan assistance
• Educational benefits
• Assistance with child care expenses
• Employee relocation packages
• Company car
• Company equipment (e.g., laptops, mobile phones)

How to develop and implement a compensation plan

There’s no one-size-fits-all strategy for developing a compensation plan. Rather, it’s best to approach it in terms of what’s right for your team. Here are some suggestions to guide you along the way.

• Create a compensation plan outline. Set an objective for your program and specific targets. Begin with job descriptions for each position on the team, and set a generalized budget for your personnel.
• Appoint a compensation manager. This position, usually filled by someone in human resources, aligns the program and researches what each position pays within the industry, how job classifications will be determined and how direct compensation will be selected.
• Craft a compensation philosophy. Determine how competitive you’ll be in your industry’s job market. Will you lead the market in direct compensation or offer modest pay with great benefits?
• Rank jobs and place them within a matrix. Outline what, if any, pay tiers should exist in pay structures for executives and sales employees, for example. You also should determine potential tiers within each job classification.
• Develop seniority grades within each job classification. It’s essential to develop opportunities for career advancement. For example, create levels or senior- and entry-level roles that may affect the compensation matrix but offer advancement for employees.
• Settle on salaries and hourly pay rates. After you outline your compensation platform, assign pay rates and salary ranges for each position and job classification. This is when you’ll fine-tune your organizational budget.
• Complete necessary policies. A compensation plan may affect policies related to payroll, fringe benefits and other pay-related matters. For example, companies often have policies for paid holidays, healthcare benefits, payroll administration and company-issued pay advances that must factor into — or at least align with — the company’s compensation policy. Ensure that all policies are updated and included in your employee handbook .
• Get approval or buy-in from your company’s other leaders. Once everything is in place, ensure that your company’s leadership team fully supports your compensation packages.
• Develop a communication plan. All of your employees should learn about the compensation program at the same time. Use several communication methods to share the plan (e.g., email, group gatherings, social media, flyers in common areas). Issue this messaging in multiple languages if not all of your employees speak English as a first language. You should also expect many questions. The complexities of total compensation are not easy to understand, and it’s essential for every employee to understand their compensation package.
• Monitor your compensation plan. Be prepared to keep tabs on and change employee compensation. Over time, adjustments will be necessary for you to remain legally compliant and competitive.

How can you ensure equity, fairness, legality and competitiveness?

Part of developing a compensation plan is ensuring it’s fair for all employees. This pertains to gender, culture, race and ethnicity, as well as to the skill sets and experience new team members bring to your company.

Before you unveil your compensation plan, address the following questions: 

• Are the programs in your compensation policy legally compliant? Be mindful of labor laws , including state laws (which may include PTO or vacation regulations) and federal laws (such as the Affordable Care Act).
• Is the overall program fair to all employees?
• Do employees perceive the overall program as fair? In this case, perception is reality.
• Is the overall program fiscally sound? Can you maintain the benefit offerings even if profits dip for a quarter or two?
• Can your organization effectively communicate the overall program to employees?
• Are the programs fair, competitive and in line with your overall compensation policies?
• Is the compensation policy competitive? Will it help your organization attract and retain top talent in your industry?

It’s crucial to keep your compensation plan active and relevant by adjusting it as necessary to stay compliant and continue attracting and retaining excellent employees.

Resources for creating compensation plans

Consider the following compensation planning and design companies that can guide you toward a fair, desirable compensation plan: 

• Culpepper and Associates: Culpepper and Associates offers compensation surveys and other services.
• PeopleFluent: PeopleFluent provides talent management services.
• Unit4: Unit4 offers comprehensive HR and financial software, including employee compensation management software.
• Flex HR: Flex HR provides full-service consulting.
• emPerform: emPerform offers all-inclusive employee performance management.

Good compensation plans make good teams

A solid compensation plan should be a key component of any company’s strategy for attracting and retaining the best team members possible. There are many ways to offer a good compensation program to your employees based on your business needs and budget. Take the time necessary to develop a comprehensive program that works for your organization, and then communicate the plan effectively to everyone on your team. Do it right, and your employee morale and retention will increase substantially.

Natalie Hamingson contributed to this article. 

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Crafting a Competitive Employee Compensation Plan Guide (with Templates)

Table of Contents

If you want to hire and retain top talent, improve employee productivity , and build trusting relationships with your employees, then crafting a competitive compensation plan is what you need.

Still, a compensation package involves far more than just an employee salary or pay rate, and it is equally important to both employees and business owners.

This text will cover everything you need to know about crafting a compensation package and benefits, including:

• The definition of compensation plan,
• Benefits of crafting a compensation package,
• Types of compensation,
• Steps on how to create compensation plans, and
• Compensation plan templates and examples.

Let’s begin! 

• A compensation plan is a formal document that outlines the components of an employee’s pay structure.
• Effective compensation plans help attract top talent, boost employee morale and productivity, promote a healthy company culture, and more.
• Direct compensation is financial or monetary compensation given to an employee for the time worked, such as hourly wages, salary, commissions, and bonuses.
• Indirect compensation, on the other hand, is non-monetary compensation that includes a retirement plan, time off, health insurance, and other employee benefits.
• Crafting a competitive compensation package includes several steps, such as deciding on your company’s compensation philosophy, researching the job market, defining the compensation structure, and including employee benefits.
• Time tracking is crucial for your business as it covers keeping track of your employees’ work hours, PTO, and more.

What is a compensation plan?

A compensation plan is a formal document that includes all the components of the employee compensation packages . This involves: 

• Hourly wages, 
• Salaries, 
• Commissions and bonuses, as well as 
• Employee benefits and other incentives.

Compensation plans are somewhat flexible, as it’s up to the employers to decide what they want to offer to their employees in order to stay competitive in the labor market.

Nowadays, as more employees work remotely, companies must make sure they offer competitive compensation packages that cater to their remote workers . For some, that may be offering location-based or location-agnostic compensation. While location-based pay will require you to pay your employees based on the cost of living in their place of residence, location-agnostic pay calls for equal pay no matter the location.

The 2 types of compensation

There are 2 major types of employee compensation for an employer to consider when setting up a compensation plan:

• Direct compensation, and
• Indirect compensation.

Apart from these 2 major types of compensation, there is an additional type that doesn’t fall into any of these categories and which we’ll discuss in more detail below.

Let’s break down each in more detail. 

Type #1: Direct compensation

Direct compensation is financial compensation given to an employee for time worked. It can be in the form of a salary, overtime pay , bonuses, or commissions (we’ll go over each more thoroughly in The 4 types of direct compensation section below).

Type #2: Indirect compensation

As opposed to direct or financial compensation, indirect compensation is the non-monetary payment provided to an employee. This type of compensation usually involves the benefits an employee receives in addition to the direct compensation, commonly known as employee benefits .

Such benefits may include health insurance, life insurance, vacation or paid time off , retirement funds, fringe benefits, etc. Some companies may also offer company stocks and profit-sharing in their benefits packages.

💡 Clockify Pro Tip

Want to know how to request time off and track it properly? Stick around and read the following blog post on the matter:

• How to request time off and track it successfully

Bonus compensation type: Incentives

Speaking of the additional type of compensation, incentive pay is also a form of employee compensation — one that doesn’t strictly fall under the above-listed categories.

Incentive pay is a form of compensation that is usually either indirect or non-financial and based on performance rather than on time worked. Incentives serve as a form of encouragement and motivation for employees to strive for excellence in their work. They usually imply a specific goal — if an employee reaches the said goal, they get the incentive, which may be in the form of travel, merchandise, or even cash. 

If you want to learn more about goals, their types, and most importantly, how to achieve them, pay attention to the following text:

• Different Types of Goals and How to Achieve Them

The 4 types of direct compensation

As we mentioned earlier, direct compensation is monetary or financial employee compensation, and these are main types of direct compensation:

• Hourly compensation,
• Salary compensation,
• Commissions, and
• Bonuses.  

Direct compensation type #1: Hourly compensation

Hourly compensation is a type of direct compensation associated with base pay, meaning companies pay their employees a predetermined rate for each hour worked.

Unless additional rules apply (some hourly workers are exempt from minimum wage and overtime ), hourly employees are treated as non-exempt as they are entitled to the federal minimum wage under the Fair Labor Standards Act . In addition to the hourly wage, the same act entitles hourly workers to receive overtime compensation — 1.5 times their standard hourly rates. This rule applies for each hour they spend working beyond 40 hours per week .

The required federal minimum wage in the US is $7.25 per hour worked . Still, if a state law requires a higher minimum wage per hour worked, then the more favorable law for the employee prevails. 

To find out if you are eligible for either federal or state minimum wage, read the following text that will give you more insight into the topic:

• Minimum wages by state in USA for 2023

Direct compensation type #2: Salary compensation

Salary compensation is another type of direct compensation associated with base pay, meaning employees receive a fixed amount of money each pay period (weekly, monthly, bi-weekly, etc.).

This fixed salary is always based on a salary range defined for a particular job position.

A salary range is the pay range defined by the employer that describes the minimum and maximum pay rate for a job position. It also includes a series of mid-range pay increases employees may expect to get during their time at a company.

In case salaried employees are exempt from the FLSA , they do not get paid either minimum wage or overtime for the hours they spend working past 40 hours per week. This is the case if they earn more than $684 per week or $27.63 per hour . If they earn less than this amount, they are treated as non-exempt and are entitled to minimum wage and overtime pay.

To learn more about the differences between hourly and salaried employee compensation, as well as their pros and cons, check out our blog post on the subject:

• Salary vs hourly employment: pros and cons

Direct compensation type #3: Commission 

Compensation based on commission is a type of direct compensation associated with variable pay . It is common among people in the sales industry who get paid in this manner based on the sales quotas, sales percentages, and goals they reach.

Commission rates may be based on:

• Revenue — for example, if a sales professional gets 5% worth of commission for each sale, and they make a $50,000 sale, they get $1,000 worth of commission for that sale,
• Gross margins or profit — the higher a sales professional sells a product or service, the higher the commission rate, and
• Commission fee — the sales professional makes a fixed commission amount regardless of the monetary value of the sales they made.

Direct compensation type #4: Bonuses

Compensation based on bonuses is another direct type of compensation associated with variable pay. Professionals who have precise goals to reach — such as managers and salespeople — usually receive bonuses.

Bonuses are frequently paired up with other types of compensation, such as commissions or salary.

In some companies, bonuses may be implemented as an incentive meant to help employees reach higher performance standards at their jobs. In such companies, employees usually receive bonuses when they live up to certain metrics (such as company OKRs or KPIs ).

How do I create an employee compensation plan?

In this section, we’ll talk about the steps you need to undertake in order to design a competitive compensation package properly.

The following steps will help your organization stay competitive in the market and attract the top-talent professionals you need. 

Let’s go over each step in more detail.

Step #1: Define the company’s compensation philosophy

Competitive compensation is based on market pay rates. Therefore, when defining the compensation in your company, you can choose to: 

• Lead, 
• Lag, or 
• Match the market .

While leading the market would entail offering higher compensation than the competitors, lagging would include offering lower compensation as compared to competitors. Finally, matching the market would mean giving the same compensation as the competitors. 

Establishing the company’s compensation philosophy is completely up to you, but bear in mind that if you want to attract and retain top talent, you should at least match the numbers on the market.

You can always offer additional, non-monetary compensation such as more days off or other employee benefits that may sound more appealing to a job candidate than the actual monetary compensation.  

Step #2: Define the type of employees you will hire

When outlining your compensation strategy, it’s also important to decide which employees you tend to hire. Remember that, as an employer, you must be aware of the different legal regulations and obligations concerning each type of worker. 

Therefore, when choosing which employees to hire, you ask yourself the following questions: 

• Are your employees full-time or part-time employees?
• Will you tap into the gig economy and employ contractors and freelancers?
• What are the average hourly rates you’ll need to offer to your freelancers and contractors?
• Does your business need to hire seasonal workers during peak times such as summer or winter holidays?

In case you’re wondering how to pay contractors and freelancers, here’s a text that will help you: 

• How to pay contractors and freelancers in 5 simple steps

Step #3: Research and analyze the job market

As said above, you need to scrutinize the market before defining your compensation package and benefits since it’s crucial for attracting top talent. 

If you are operating in the US, you can obtain useful general compensation statistics from the US Bureau of Labor Statistics .

Still, the best way to do so is to analyze and research salary data and market surveys — this is also known as compensation benchmarking.

When looking for market surveys and salary data to buy and analyze, make sure you pay close attention to the following elements:

• Industries — look for surveys that cater to your company’s industry,
• Location — look for surveys that cater to the country, state, or city your company is operating in, 
• Employee size — look for surveys that cater to the size of your company,
• Revenue size — look for surveys that show data from companies that have a similar business volume as you, or
• Job summaries — look for the job summaries closest to the positions you need.

Furthermore, if you want to find compensation statistics on salary-focused websites, bear in mind that this data is not the true representation of the market, as anyone can edit it. 

Step #4: Define your compensation structure 

Compensation structure refers to the compensation strategy you will use to define how employees will be paid. No matter how you choose to compensate for your employees’ work, you’ll need to think carefully about how best to define the hourly rates, salaries, and salary ranges you want to offer.

Also, make sure you take the following elements into consideration before you make your decision:

• The industry you are operating in,
• The size of your company,
• The revenue your company makes,
• The specific job positions you are looking for, and
• The importance and worth of these positions for the successful operation of your company.

Here’s how you can best define the salaries and hourly rates in your company .

Defining employee salaries

If you’ve decided to compensate your employees through salaries, you’ll need to think about the salary ranges you want to offer.

To best define employee salaries , make sure you: 

• Carry out job analysis — determining more information about the job position you are opening, 
• Group the jobs into job families — grouping the jobs by department and type (such as executive, administrative, technical) or location,
• Gauge employee experience and expertise for a certain job position — focusing on the skillfulness and the collection of experiences that an employee possesses for the successful operations of the company,
• Group jobs by job grades — the US federal government recognizes 15 job pay grades, each characterized by the General Schedule (GS) payscale . For instance, for an entry-level position with a bachelor’s degree, the average pay rate in 2023 was from $40,082 to $52,106 per year,
• Calculate the actual salary ranges — most companies will use +/- 15% or 20%, starting from the midpoint, and
• Decide how you want employees to progress within their salary range — for example, you can base this progression on the number and difficulty of skills, duties, and responsibilities, on a preplanned schedule, etc.

Defining employee hourly wages

If you decide to hire hourly workers, you must make sure you determine hourly wages carefully. To be able to do that (and make sure you are offering competitive hourly rates), you must also take in factors such as your industry, skills, and the experience you are looking for in a candidate.

Here are some hourly rates effective for 2024 based on federal pay grades that you can use as a reference when defining your own compensation packages:

• Entry-level positions (an associate’s or bachelor’s degree) — hourly rates range from $18.10 to $23.52,
• Mid-level positions (a bachelor’s or master’s degree) — hourly rates range from $24.60 to $31.97, and
• Top-level positions (a master’s degree or Ph.D.) — hourly rates range from $42.41 to $55.14.

Step #5: Add in employee benefits

Apart from direct compensation, in order to attract top talent, you’ll also need to offer competitive benefits packages when crafting your compensation strategy.

Therefore, make sure you include the most common employee benefits in your employee compensation package. Such benefits include (but are not limited to): 

• COBRA health insurance — additional 18 months of health coverage to eligible employees after job termination, either voluntary or involuntary (applicable to companies with 20 employees or more),
• Workers’ compensation insurance — medical insurance and compensation to employees who suffered an injury or illness in the workplace,
• Disability insurance — compensation benefits provided to employees due to ‘temporary disability’ that occurred in the workplace, 
• Paid holidays — in order to stay competitive, employers may provide employees with paid holidays as a way to boost employee morale,
• Family and medical leave — includes maternal, paternal, and adoption leave (not required to be paid leave, by law),
• Flexible schedules — employers may choose to offer flexible work arrangements such as a 4-day workweek or a 9/80 work schedule that contribute to a better work/life balance,
• Hazard pay — provided to employees whose job duties require them to work in unsafe conditions (such as security and military professions),
• Regular work breaks — times off during work time provided for lunch breaks, short breaks, and others.

If you are not sure about the holidays (paid or unpaid) you are entitled to while living and working in the US, head on to the following blog post to learn more about it:

• What are paid holidays and how do they work?

Bonus tip #1: Calculating commissions

If you’ve decided to include commissions in your compensation planning (either as the only form of compensation or a supplementary form of compensation), there are several factors you should consider when defining commissions for your employees:

• The commission rate — this is the percentage (e.g., 5%) of fixed compensation (e.g.,$25) employees will get for each sale they make.
• The total number of sales,
• The gross margin of the product being sold,
• The total net profit of the product being sold (when you want to inspire your sales team to focus on selling more profitable products in your offer),
• The cash received from sales (when you want to inspire the sales team to collect all overdue receivables), and
• The inventory (when you’re looking to eliminate a product from stock).
• The overrides — one percentage (e.g., 5%) of fixed compensation (e.g., $25) may apply before the employees reach a certain goal, after which they can count on a higher percentage (e.g., 8%) or fixed compensation (e.g., $30).
• The splits — in the case when two or more employees are responsible for the sale they split the commission.
• The payment delay — commissions are usually calculated subsequently at the end of the month.

Bonus tip #2: Calculating bonuses

Sometimes, you’ll want to include bonuses in your employee compensation packages as additional incentives for high-quality performance.

Here are some of the bonuses you can consider offering:

• Signing bonuses — bonuses offered to job candidate executives as incentives to inspire them to accept positions,
• Salary-based bonuses — based on the amount of hourly wages or annual salaries the employees are making (the higher the wages or salaries, the higher the bonuses),
• Bonuses based on department goals — once a team or department meets the predefined goal, all members of the team receive bonuses,
• Referral bonuses — the higher the number of customers referred, the higher the bonuses for the employees who referred them,
• Performance bonuses — bonuses based on the employee’s overall performance or achieved specific goals at work,  
• Holiday bonuses — non-performance-based bonuses typically paid around a beloved national holiday, such as Christmas,
• Quarterly or annual bonuses — if the company reaches a certain net profit goal, the employees receive a flat rate bonus or percentage,
• Retention bonuses — bonuses paid to top performers in order to keep them, and others. 

Benefits of a fair compensation system

A fair compensation strategy must be developed and implemented without any prejudice or favor to anyone or anything, showing equity in the workplace.

As such, a compensation system has a handful of benefits for both the organization and the employees:

• It helps you attract top talent through competitive compensation packages,
• It helps employees understand exactly how valued they are within the organization,
• It motivates employees to perform better at work ,
• It raises the morale and cooperation level among the people,
• It elevates employee satisfaction for a job well done, and
• It promotes workplace equity.

If you want to learn more about calculating work hours and streamlining your payroll processes, head to the following link:

• How to calculate work hours: A step-by-step guide to calculating payroll and hours worked

Compensation plan template 

Now that you know what you need to include in your compensation plan, here is an example of a compensation plan template that you can follow when defining your compensation packages.

You can download the template and choose the form that suits you best, whether that’s Google Sheets, Google Docs, PDF, Excel, or Word.

⏬ Download an Employee Compensation Plan in Google Sheets

⏬ Download an Employee Compensation Plan in Google Docs

⏬ Download an Employee Compensation Plan in PDF

⏬ Download an Employee Compensation Plan in Excel

⏬ Download an Employee Compensation Plan in Word

What is an example of a compensation plan?

The following is an example of a filled out compensation package template. The example plan below contains some of the most important information when preparing a compensation package for your employees, including: 

• Basic information, 
• Direct compensation information, 
• Benefits, 
• Retirement planning, and 
• Other relevant information.

Most of the information in the compensation plan example we already discussed in the above text, and we hope this example helps you craft your compensation package successfully and make sure you offer equity to your employees at the same time.

As for the direct compensation section in the template, you can see that the employee is an hourly worker hence there’s no salary information. Since she is a sales specialist, you can see all the details about her commission-based compensation, too.

The next section in the template is about the employee’s benefits — whether the employee in question is given dental care, information about medical insurance, time off, and others.

As for the retirement planning section, the template provides information about the employer-paid retirement savings plan, eligibility to buy shares of the companies and under which conditions, or whether the employee may obtain a percentage of the company’s total earnings or not.

Finally, the template allows you to write any additional information about certain benefits, break and meal periods, reimbursement of transportation, and others. 

Tracking work hours vigilantly is the cornerstone of fair employee compensation

Whether you need to fill in employee timesheets, track overtime, PTO, or billable hours, having a reliable tool is critical. Clockify is an efficient business solution that can help you with that, as it allows employees to track their work time in real-time (with a timer), add it manually afterward, or enter it in a timesheet template .

With Clockify, you’ll also be able to define hourly rates for all people within your company and have their pay calculated automatically based on the number of hours they worked in a given time period.

What’s more, no matter if you hire salaried or hourly workers, exempt or non-exempt, Clockify’s free employee hours tracker will also help you stay on top of compensatory time (provided that your employees are eligible for comp time, of course).

Clockify can be your ally in making sure your employees are compensated accurately and timely, no matter which employees you hire.

Marija Kojic is a productivity writer who's always researching about various productivity techniques and time management tips in order to find the best ones to write about. She can often be found testing and writing about apps meant to enhance the workflow of freelancers, remote workers, and regular employees. Appeared in G2 Crowd Learning Hub, The Good Men Project, and Pick the Brain, among other places.

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How to Write a Compensation Proposal

Last Updated: March 24, 2023 References

This article was co-authored by Jill Newman, CPA . Jill Newman is a Certified Public Accountant (CPA) in Ohio with over 20 years of accounting experience. She has experience working as an accountant in public accounting firms, nonprofits, and educational institutions, and has also honed her communication skills via an MA in English, writing jobs, and as a teacher. She received her CPA from the Accountancy Board of Ohio in 1994 and has a BS in Business Administration/Accounting. This article has been viewed 169,879 times.

A compensation proposal is a letter addressed to an employer seeking a new or improved rate of pay. It can serve as the first step in negotiating a higher salary. Letters often work better than asking your boss in person because it gives him or her time to process the request without being put on the spot. Though writing a letter may seem less stressful than having a meeting, you will still have to conduct research and present it in a formal way to improve your chances of having a successful negotiation.

Gathering Information

• If you're unaware of what your exact compensation is, collect your past pay stubs. If you don't have these, ask at the company payroll department for your financial history at the job.

• Not all companies do regular performance reviews. In this case, there are a few things you could do to gather information to help your case. For example, if you have team or planning meetings for your area or department, then these could be good opportunities to check in with your boss and assess your performance on a regular basis.
• You could periodically schedule a meeting with your boss and ask how you're doing at your job. Make note of the feedback you receive. If your boss says you're doing a great job, use this as your positive feedback. If your boss tells you a few things you could improve upon, take that feedback seriously and work on those areas. Then when you write your letter, you can say how you've taken your boss's advice and improved.
• If you have a direct supervisor who's not your boss, see if he or she will give you some feedback. If you get good feedback, you can ask your supervisor to write a letter to your boss about your good performance.
• You may also consider looking for a mentor at work. If your company has a mentorship program, then indicate your interest to your supervisor. Or, if there is not mentorship program, then try talking with a more experienced, successful employee and see if they would be willing to be your mentor.
• Take all feedback you receive without getting defensive. If you get some negative feedback, don't argue. Instead, take the advice and use it when you write your letter. You can demonstrate that you've taken feedback to heart and improved your performance. [3] X Trustworthy Source Harvard Business Review Online and print journal covering topics related to business management practices Go to source Keep in mind that businesses are results-driven, so it is important to put your emotions aside during this process.

• Use sites like PayScale or Glassdoor to research salaries within your industry.
• For example, you might find that the average worker in your field earns between $45,000 and $50,000. If you're earning $44,000, you're below the average, and it would certainly be reasonable to ask for more money. You can use this as leverage when you write your proposal.
• If, however, you're making $52,000, you might have trouble getting an increase. You boss could counter your request by saying that you make an above-average salary.
• If you're earning above the industry average, you could still ask for a raise, but you'll need a lot of evidence that you're a true asset to the company. Financial figures would help most, because it would show your boss that he or she is making money with you around.

• Also consider the company's budget. If things have been tough for a while, your boss may not be able to give you a raise even if he wanted to. If earnings have been high, however, you can take advantage of both the availability of money and your boss' good mood by asking then.

Writing Your Letter

• Place your name, title, and address on the top left of the paper.
• Place the date below this.
• Put your boss' name, title, and address below this.
• Address your boss appropriately. Start with "Dear Mr." or "Dear Mrs."
• Have 1-inch margins around the paper and use single spacing. Don't indent, just use a double space in between paragraphs.
• End with "Sincerely," then leave 4 lines so you can manually sign your name. Below this, type your name and title.

• For example: Dear Mr. Smith, Please allow me to once again express my pride in working for this company. I appreciate all the opportunities this job has granted me.

• You will need to provide concrete evidence of your performance in the letter. Be sure to include specific details, percentages, and figures about your contributions to the company. Avoid general statements such as, “I work hard” and “I do a great job.”
• Mention how sales have increased in your department, or how customer satisfaction has gone up.
• If you have any good performance reviews, cite them here. Also be sure to include copies of them with the letter.

• Include exact figures here. State exactly what you're making, and then state what the industry average is. Point out what the discrepancy is.
• If you're making above average, point out exactly why you're such an asset to the company that you deserve more.

• Write, "In line with my performance for this company, I request a compensation increase of 3% annually, which will bring my yearly salary to $50,000."
• It is often good to ask for slightly more than you actually want so if your boss negotiates with you, you'll end up closer to what you actually want. Don't go overboard, however, or you'll seem unreasonable. For example, if you want a 2% raise, ask for 2.5 or 3%, not 10%. [11] X Research source

Expert Q&A

• If you are in a position where you think you deserve greater compensation but an employer has already firmly stated what they are offering in terms of salary or benefits, think of other ways in which you can be reimbursed: relocation allowances, extra time off, greater retirement benefits, financial help with educational costs, etc. Thanks Helpful 0 Not Helpful 0

• Writing a compensation proposal is an alternative to in-person salary negotiations and should only be done when an employer indicates that he or she is open to such a proposal. Do not send a compensation or salary proposal out of the blue or without having been previously requested to do so. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ https://hbr.org/2015/03/how-to-ask-for-a-raise
• ↑ https://hbr.org/2014/12/how-to-ask-for-feedback-that-will-actually-help-you
• ↑ http://www.businessinsider.com/how-to-ask-for-a-raise-and-get-it-2014-6
• ↑ http://businessletterformat.org/
• ↑ http://www.forbes.com/sites/learnvest/2014/05/07/how-to-ask-for-a-raise-and-get-it/3/
• ↑ http://www.salary.com/9-things-never-say-ask-for-raise/slide/10/

About This Article

To write an effective letter of compensation, start the body of the letter by reassuring your boss that you like your job and want to stay, so they don’t feel threatened. Then, mention what you have accomplished for the company, and compare your income to others in the industry so your boss knows what you and the job are worth. After that, include the exact amount you want to be paid, but ask about 1% more than you'll accept so you have room for negotiation. For tips from our Accountant reviewer on how to gather information for the letter, keep reading! Did this summary help you? Yes No

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Salary Proposal Letters

A salary proposal letter also called a compensation proposal is a letter written by an employee and is addressed to the employer. It focuses on the employee’s request for a salary raise.

When an employee thinks he/she deserves a better salary package than the one that is being offered, he formally asks the employer to consider raising his/her salary. The employee tries to persuade the employer through reasoning and evidence of why he/she deserves a better salary.

By making use of a salary proposal letter, an employee is making the process formal which is beneficial in two ways. One, it can be formally channeled through the organization and would be kept in the record. Secondly, the use of the letter instead of orally asking the employer for a salary raise would help the employer to properly process and evaluate the request rather than having to decide on the spot.

A salary proposal letter can be written by:

• Existing employee for the current position – If an employee thinks he deserves a better salary for his current responsibilities or because the market is offering a better rate, he presents his case in front of his employer through a ‘Salary Proposal Letter’.
• Existing employee for a promoted position – If an employee is being promoted but considers the increased salary package is not fully balanced with increased duties, he requests the employer to improve the package.
• A newly selected candidate who is to be hired – When an organization selects a candidate but the candidate thinks the salary is not competitive enough, he asks his new employer to bring in an increase.

Sample Letter

Name of Employee and designation

Dear Mr. Edison,

I, Greg Smith, want to forward a formal request for the evaluation of my current salary. I have been working with this company (XYZ) since 2008 and have experienced the evolution of my career. I have always stood with the company in the difficult times, like recession periods, even without a six-month salary.

I have always been a cooperative employee and have welcomed any responsibilities bestowed upon me. I have always tried to render my services in the best possible way which can be evidenced by my track record and yearly evaluation reports. An analysis of my record, industry average salaries and my recent achievements would support my request for a rise of at least 15% in my annual salary figure.

I have been serving as a procurement officer for the past three years and due to the death of two senior employees in my department, I have undertaken many of their responsibilities as well. For the past one and a half year, I have been directly involved in staff management of my department, budget making along with my other duties as well. Some of my recent achievements are stated here to further support my request.

• I have improved budget conformance in terms of time and money. For the past six months, 27,000/- dollars have been saved as calculated by the accounts department (details attached with this letter).
• The staff performance in my department has been improved as well and the HR department can certainly provide you with the details.
• My yearly evaluation letters (attached in here) further provide an analysis of fulfillment of my added responsibilities.

In addition, I have also done some research which might be helpful in the processing of my request. Therefore, I am providing the details here. According to Payscale.com, the industry average annual salary for the ‘procurement officer’ is around 50,000/- dollars which are 24% less than my annual income of 38,000/- dollars. However, I am still requesting a 15% increase.

I will be very grateful to you if you entertain my request. I am open to negotiation.

Greg Smith.

The letter template

Format: MS Word [.docx]

Options:  Download

Sample Letter Hub

Salary Proposal Letter To Employer (5 Samples)

By Mubashir

March 5, 2024

Salary Proposal Letter To Employer is a letter that you send to your employer to propose a salary increase.

It is important to write a well-crafted salary proposal letter in order to make a good impression on your employer and increase your chances of getting approved for a raise.

In this article, we will share some templates, examples, and samples of Salary Proposal Letter To Employer.

These resources will help you write a professional and effective salary proposal letter that will get you the results you are looking for.

Salary Proposal Letter to Employer

[Your Name] [Your Address] [City, Postal Code] [Email Address] [Phone Number] [Date]

[Employer’s Name] [Employer’s Title] [Company Name] [Company Address] [City, Postal Code]

Dear Mr./Ms. [Employer’s Last Name],

I am writing to express my interest in the [Position Name] position at [Company Name]. I have been following your company’s progress with great interest and believe that my skills and experience would be a valuable asset to your team.

I have [Number] years of experience in [Industry Name], where I have consistently exceeded expectations in roles such as [Previous Position Name] and [Previous Position Name]. In my previous role at [Previous Company Name], I was responsible for [List of Responsibilities]. I successfully [List of Accomplishments].

I am confident that I can bring my expertise in [Skill Name], [Skill Name], and [Skill Name] to your company. I am a highly motivated and results-oriented individual with a strong work ethic. I am also an excellent communicator and have a proven ability to build strong relationships with clients and colleagues.

I understand that the salary range for this position is [Salary Range]. I am seeking a salary of [Your Desired Salary], which is commensurate with my experience and qualifications. I am open to negotiation and believe that my contributions to your company will far exceed the cost of my salary.

I am eager to learn more about this opportunity and how I can contribute to the success of [Company Name]. I am available for an interview at your earliest convenience.

Thank you for your time and consideration.

Sincerely, [Your Signature] [Your Typed Name]

Salary Proposal Letter To Employer Sample

[Your Name]

[Your Address]

[City, Postal Code]

[Email Address]

[Phone Number]

[Employee Name]

[Employee Address]

Subject: Salary Increment Proposal

Dear [Employee Name],

I hope this letter finds you well.

I am writing to propose a salary increment in recognition of your outstanding contributions to our team. Your performance has consistently exceeded expectations, and you have made significant contributions to the success of our department.

Since joining [Company Name] on [Start Date], you have consistently demonstrated:

Exceptional technical skills and expertise in [Relevant Areas]

Strong work ethic and dedication to your role

A positive and collaborative attitude that inspires your colleagues

A proactive approach to problem-solving and innovation

Your efforts have not only benefited our team but have also contributed to the overall growth and success of the company. Specifically, your contributions have:

[List specific accomplishments and quantifiable results]

In light of your exceptional performance, I am proposing a salary increment of [Percentage]% to [New Salary]. This increment is effective from [Start Date of Increment].

I believe that this salary adjustment is both fair and competitive, and it reflects the value that you bring to our organization. I am confident that you will continue to make significant contributions to our team and the company as a whole.

I would like to schedule a meeting with you to discuss this proposal further and answer any questions you may have. Please let me know your availability at your earliest convenience.

Thank you for your continued hard work and dedication. We are fortunate to have you as a valuable member of our team.

Appraisal Letter For Salary Proposal To Employer

[Employer’s Name]

[Employer’s Title]

[Company Name]

[Company Address]

Dear [Employer’s Name],

I am writing to formally propose a salary adjustment for my role as [Your Role] at [Company Name]. I have been with the company for [Number] years and have consistently exceeded expectations in my responsibilities.

During my tenure, I have made significant contributions to the team and the organization as a whole. I have successfully:

[List of key accomplishments and quantifiable results]

I am confident that I can continue to make valuable contributions to the company in the future. I have a strong work ethic, excellent communication and interpersonal skills, and a proven track record of success.

Based on my performance, experience, and the current market value for similar roles, I am requesting a salary increase of [Percentage or Amount] to [Proposed Salary]. This adjustment would bring my salary to a level that is commensurate with my contributions and the value I bring to the organization.

I am eager to discuss my salary proposal with you further and explore how we can mutually benefit from this adjustment. I am available to meet at your earliest convenience.

Thank you for your time and consideration. I appreciate the opportunity to work at [Company Name] and am committed to its continued success.

Salary Proposal Request Letter To Employer

[Employer Name]

Dear [Employer Name],

I am writing to formally request a salary proposal for the position of [Position Name] that I applied for on [Date]. I am very interested in this opportunity and believe that my skills and experience would be a valuable asset to your team.

During our recent interview, we discussed the responsibilities and expectations of the role. Based on my understanding, I have researched industry benchmarks and market rates for similar positions. I believe that a salary range of [Salary Range] would be commensurate with my qualifications and the value I can bring to the company.

I am confident that I can make a significant contribution to your organization. I have [Number] years of experience in [Industry/Field], where I have consistently exceeded expectations in [Relevant Skills]. I am also proficient in [Software/Tools] and have a strong understanding of [Business Processes].

I am eager to learn more about the specific compensation package that you are offering for this position. I am open to discussing salary, benefits, and other forms of compensation that may be available.

I am available for a follow-up meeting or call at your earliest convenience to further discuss my salary expectations and how my qualifications align with the company’s needs.

Thank you for your time and consideration. I look forward to hearing from you soon.

[Your Signature]

[Your Typed Name]

Wishes For Salary Proposal Letter To Employer

I hope this letter finds you well. I am writing to formally request a salary increment in recognition of my contributions and performance over the past [number] years.

Since joining [Company Name], I have consistently exceeded expectations in my role as [Your Role]. I have taken on additional responsibilities, led key projects, and made significant contributions to the team’s success.

Key Accomplishments:

[List of specific accomplishments and quantifiable results]

[List of additional responsibilities and initiatives undertaken]

[Highlight any positive feedback or recognition received]

Based on my performance and the current market value for similar roles, I believe that a salary increment of [percentage or amount] is reasonable and justified. This would bring my salary in line with industry benchmarks and reflect my increased value to the company.

I am confident that I can continue to make valuable contributions to [Company Name] in the future. I am eager to take on new challenges and responsibilities that will allow me to grow and develop within the organization.

I understand that salary decisions are based on a variety of factors, including the company’s budget and overall financial performance. However, I would appreciate the opportunity to discuss my request further with you. I am available to meet at your earliest convenience.

Simple Salary Proposal Letter To Employer

I am writing to formally request a salary increase of [Percentage]% to [New Salary Amount] per annum. I have been employed with [Company Name] for [Number] years as a [Your Position].

During my tenure, I have consistently exceeded expectations in my role. My key accomplishments include:

[Accomplishment 1]

[Accomplishment 2]

[Accomplishment 3]

I have also taken on additional responsibilities, including [Additional Responsibilities]. I am confident that I have made a significant contribution to the company’s success.

Based on my performance and the current market value for similar positions, I believe that my requested salary is fair and reasonable. I am committed to continuing my contributions to [Company Name] and am eager to take on new challenges.

I am available to discuss my request further at your earliest convenience. Thank you for your time and consideration.

Salary Proposal Letter To Employer After 1 Year

I hope this letter finds you well. I am writing to respectfully request a salary increase after one year of employment with [Company Name].

During my time with the company, I have consistently exceeded expectations in my role as [Your Role]. I have taken on additional responsibilities, including:

[List of additional responsibilities]

These contributions have resulted in significant benefits to the team and the organization, including:

[List of accomplishments and quantifiable results]

I have also received positive feedback from my colleagues and supervisors, who have recognized my hard work, dedication, and commitment to excellence.

Based on my performance and contributions, I am requesting a salary increase of [Percentage or Amount]. This request is in line with industry benchmarks for similar roles and experience levels, as well as the value I have brought to the company.

I am confident that I can continue to make valuable contributions to [Company Name] in the future. I am eager to take on new challenges and responsibilities, and I am committed to the company’s success.

I would appreciate the opportunity to discuss my salary request further with you at your earliest convenience. I am available to meet at your earliest convenience.

Salary Proposal Letter To Employer Template

Subject: Salary Proposal

I am writing to offer you a salary proposal for the position of [Position Name] at [Company Name]. We are pleased to extend this offer to you based on your exceptional qualifications and the value you will bring to our team.

Proposed Salary:

We are proposing a starting salary of [Amount] per [Frequency (e.g., month, year)]. This salary is commensurate with your experience, skills, and the market value for this role.

In addition to your salary, you will be eligible for the following benefits:

[List of benefits, such as health insurance, paid time off, retirement plan]

Performance Expectations:

Your performance will be evaluated regularly based on the following criteria:

[List of performance expectations]

Start Date:

Your start date is [Date]. Please confirm your acceptance of this offer by signing and returning a copy of this letter to me by [Date].

Additional Information:

We are excited to have you join our team and believe that you will be a valuable asset to our organization. If you have any questions or require further clarification, please do not hesitate to contact me.

Thank you for your time and consideration. We look forward to welcoming you to [Company Name].

[Your Title]

Formal Letter For Salary Proposal To Employee

I am writing to you today to formally propose a salary increase of [Percentage]% to your current salary, effective [Effective Date]. This increase brings your annual salary to [New Annual Salary].

This salary adjustment is a recognition of your outstanding performance and contributions to our team over the past [Number] years. During this time, you have consistently exceeded expectations in your role as [Employee’s Position].

Your accomplishments have included:

Your hard work, dedication, and positive attitude have made a significant impact on our team and the organization as a whole. We value your contributions and believe that this salary increase is a fair reflection of your worth.

We understand that salary is an important factor in your career and financial planning. We are committed to providing our employees with competitive compensation and benefits that align with their contributions and the market value for their skills and experience.

This salary adjustment has been approved by [Approving Authority]. If you accept this proposal, please sign and return a copy of this letter to me by [Return Date].

We are confident that you will continue to be a valuable asset to our team and we look forward to your continued success.

Thank you for your hard work and dedication.

Salary Compensation Proposal Letter To Employer

Subject: Salary Compensation Proposal

I am writing to formally propose a salary compensation adjustment for my position as [Your Position] at [Company Name]. I have been employed with the company for [Number] years and have consistently exceeded expectations in my role.

During my tenure, I have made significant contributions to the team and the organization, including:

I have also taken on additional responsibilities and projects beyond my job description, demonstrating my commitment and value to the company.

Based on my performance, experience, and market research, I believe that a salary adjustment is warranted. I am requesting a salary increase of [Percentage]% to [New Salary Amount]. This request is in line with industry benchmarks for similar positions with comparable experience and responsibilities.

I am confident that I will continue to be a valuable asset to the company and am eager to contribute to its continued success. I am available to discuss my proposal further at your convenience.

How to Write a Salary Proposal Letter to Employer

Writing a salary proposal letter is an important step in the negotiation process. It is an opportunity to state your case for a higher salary and to provide evidence to support your request.

1. Research Your Worth

Before you write your letter, it is important to do your research and determine what you are worth.

This includes looking at industry benchmarks, your experience and skills, and the cost of living in your area.

2. State Your Case

In the first paragraph of your letter, state your case for a higher salary. Be clear and concise, and provide specific evidence to support your request.

3. Provide Evidence

In the body of your letter, provide evidence to support your request. This could include your performance reviews, your experience and skills, or the cost of living in your area.

4. Be Negotiable

It is important to be negotiable in your salary proposal. Be prepared to compromise and to accept a salary that is lower than your initial request.

5. Be Professional

Your salary proposal letter should be professional and well-written. It should be free of errors and should be written in a clear and concise style.

6. Follow Up

After you have submitted your salary proposal letter, follow up with the employer to see if they have any questions or if they are interested in negotiating.

7. Be Patient

It may take some time for the employer to make a decision on your salary proposal. Be patient and do not be discouraged if you do not receive a response immediately.

FAQs about Salary Proposal Letter To Employer

What is a salary proposal letter.

A salary proposal letter is a formal document that you can send to your employer to request a salary increase.

It should outline your reasons for requesting the increase, and provide evidence to support your request.

What should I include in a salary proposal letter?

Your salary proposal letter should include the following information:

• Your current salary and the salary you are requesting
• Your reasons for requesting the increase
• Evidence to support your request, such as your performance reviews, accomplishments, and market research
• Your availability to discuss your request further

How do I write a salary proposal letter?

To write a salary proposal letter, you should:

• Start with a formal salutation
• State your purpose for writing the letter
• Provide evidence to support your request
• State your desired salary
• Close with a professional closing

What are some tips for writing a successful salary proposal letter?

Here are some tips for writing a successful salary proposal letter:

• Be professional and respectful
• Be specific and clear
• Proofread your letter carefully before sending it

What should I do if my salary proposal is rejected?

If your salary proposal is rejected, don’t be discouraged. You can try to negotiate with your employer, or you can wait and reapply for a higher salary at a later date.

Salary Increment Letter To Employee From The Employer (5 Samples)

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How to Write a Compensation Plan or Proposal: 15 Steps

Writing a compensation proposal is something formal you are writing to the boss, so it has to look very professional also should be attractive at the same time. A compensation proposal is an official document written to seek for the rise in pay.

Letters are the best way to ask your boss for an increase in the pay as he or she may get time to look into the request from all spheres. Also writing a proposal letter is less stressful than meeting the boss in person.

Best Compensation Plan Tips:

The following mentioned are few tips on writing an employee compensation plan,

1. Follow the proper format:

The professional and the proper format includes the name, title and the address at the top left of the paper. The date should be placed below. The name of the boss should be written with the title and the salutation. Leave an inch margin from all the sides. The salary negotiation letter should be balanced and appropriate as it is to be presented to the boss of the company.

2. Start with a cordial statement:

The letter should be started with the cordial statement like “respected sir , kindly allow me to express my pride for working in the company for so long. I appreciate and adore the way the company has thrown potential challenges to me and made me efficient enough to handle them.” Do not throw the stone on the boss by writing like “I want you to increase my pay as soon as possible.” Just be polite in your writing.

3. Mention all the accomplishments of yours:

Whatever you have accomplished till now, just write everything down. You should know the way of writing your own accomplishments . The bosses are not always aware of the achievements so it is your duty to make them aware by writing to them.

On seeing various contributions of yours for the company , he or she will certainly consider you an asset of the company. Highlight all the good and hard work you did for the company and also demonstrate that you deserve more money than before.

4. Mention all the industry standards by presenting full research:

Your boss might not be aware of the industry standards and also you might be getting less pay than the industry standards. So, it is your duty to bring to the forefront of the rights you deserve. The letter must be presented with the research done on the condition of the market and the pay of the employees at your level.

Maybe the boss comes to know that what you deserve is more than what you are getting right now. So, it will be better to involve the research work done on the company’s standard norms.

5. State your expectations:

State what your expectation are from the company. The proposal must clarify what are your expectations from the company. For Example , if you want an increase in the salary package or increase in the annual performance bonus or more benefits and higher sales commission you want.

Just state clearly what you want to get from the company. If your letter will directly say what you wish to have like an increase in salary, then it will create more impact than writing lengthy essays in the letter.

6. Explain the figures in the proposal:

Just mentioning the increase in sales will not do any good to you. You will have to mention clearly what your exact figure for the rise in salary is. If it is a 4% increase in the salary, then mention it clearly by also comparing to the industry’s rise in value.

You need to write in a professional manner like my performance in company justifies the result, it is providing, so I wish to get an increase of 4% rise in the salary, annually.

7. Write everything in a simple manner:

Do not write anything which is not understandable to the boss or even a layman. After all the boss is also a common man who would like to read the simplistic proposal, as they indeed save lots of time.

Just write in a simple way. Do not complicate the sentences and also do not make use of the technical jargon.

8. First, negotiate the salaries and then present the proposal:

Negotiating the salaries does not mean stating only your starting range from where you started, but should also accompany certain other essential factors like job requirements, the credentials, years of experience you had, where and in which company.

Also, start by writing from the lowest number to the highest number. Make sure if you are mentioning any numerical figures, they are correct or you will land in trouble. It will affect your image if the numbers mentioned go wrong.

9. No Grammatical Errors:

While you write the whole proposal plan, look at the proposal once before finalizing so that there are no grammatical errors in it. Grammatical errors in the compensation proposal will let your image down and can raise questions over the number of experience you have gained.

So, do not give any chances to the boss to find out mistakes regarding your proposal. If you find any doubt then consult anyone from among you who is an expert and knows the knack of writing professional proposals.

10. Be brief in what you write:

The bosses usually are not free to go through the whole essay that you write. So, it is better for you to be specific and write up to the mark. Do not write anything extra that diverts the attention.

If you wish to have an increase in a certain percent, rise in the present salary then just directly write down that without creating any roundabouts in the lines.

11. Also, know the financial status of the company first:

First, see how much money you make, then see how much did you make last year and then do the comparison between both. Investigate in the field regarding the amount being paid to the other employees at your position in the company.

If you are not able to collect the exact data, then ask the company’s payroll department to provide you financial history of yours at a job and it will help you out much more.

12. Gather the positive feedbacks you got and write them down:

Positive feedbacks include the better performance reviews, customer feedback, praiseworthy statement by any senior in the company, or anything which boosted your morale must be kept with you as a record so that you can cite them into your compensation plan.

Not every company gathers information regarding the regular performance of the employees, but if your company does, then go ahead by mentioning the appraisals you get. Remember not to write any negative feedback, just write down the positive ones into the proposal.

13. Use kind words in the proposal:

You need to make use of kind words while writing a salary proposal. Being harsh will only affect your image and will somehow affect on the result of the proposal being sent to you.

So, while keeping in mind the kind words, use simple and short sentences to express the desires and wants regarding the salary.

14. Write to the boss, according to the time:

Time should also be one of the considerations while compensation plan writing. This is because you never know what the company is going through. Maybe, the company is going through some financial imbalance and is not in the position of paying you the extra or increase in the salary or maybe the time is the busiest time of the year and the boss is busy, hence could not refer to your proposal well and consider your request.

Also, you will have to consider the mood of the boss. If you think the boss is in a happy mood and will ponder over your request, then write to him or her otherwise do not write to the boss, else your request will be ignored. So, taking timing into the account is very important.

15. Write down the alternative benefits:

Sometimes it becomes difficult for the company to cater to what you desired for, so in that case, you will have to mention the alternatives like the increase in other additional benefits etc.

This is done in the case if you do not want to get out of the pool completely, then you can demand for the compensation like for the additional benefits and so on. Other than this, it may include the education benefits, childcare, pension plans, health insurance, sick days and so on.

Conclusion :

So, above are some of the points that one must keep in mind while writing for the proposal. It is important to write a compensation plan in a professional manner as it also forms part of the personality of the employee , it presents the efficiency of the communication and presents forth the skills of writing, which indeed are needed by the professionals.

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Salary Proposal Template

Download this Salary Proposal Template Design in Word, Google Docs, PDF, Apple Pages Format. Easily Editable, Printable, Downloadable.

Suppose you think that a salary adjustment is necessary. In that case, you have to create a proposal to present your case to your employer. When you make a salary proposal, it’s important to ensure that you have a proper basis for the raise and not just basing it on your judgment. Check out our ready to use and research-based Salary Proposal Template. It is made by our business gurus to communicate your message better. Just make some minor changes to its content to make it your own. Don’t pass up this amazing opportunity and experience convenience now!

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Salary Structures: Creating Competitive and Equitable Pay Levels

Salary structures are an important component of effective compensation programs and help ensure that pay levels for groups of jobs are competitive externally and equitable internally. A well-designed salary structure allows management to reward performance and skills development while controlling overall base salary cost by providing a cap on the range paid for particular jobs or locations. The following highlights are drawn from the 2010 Culpepper Salary Range Structure Practices Survey .

Key Survey Findings

• 72 percent of surveyed North American companies reported having formal base salary range structures.
• Most companies with formal base salary structures review their structures annually.
• 93 percent use compensation survey market data when designing salary structures.
• 82 percent use traditional salary structures, while 7 percent use broadband structures.
• 55 percent have multiple structures varying by job and/or geographic location.
• Salary range spreads and midpoint-to-midpoint differentials vary significantly by job level.

Salary Ranges and Structures Defined

A salary range is the span between the minimum and maximum base salary an organization will pay for a specific job or group of jobs. A salary range structure (or salary structure ) is a hierarchal group of jobs and salary ranges within an organization. Salary structures often are expressed as pay grades or job grades that reflect the value of a job in the external market and/or the internal value to an organization.

Percent of Companies with Formal Salary Range Structures

Seventy-two percent of surveyed companies reported having formal salary range structures (Table 1). As companies increase in size they are more likely to have salary range structures. Less than half of companies with fewer than 100 employees use salary range structures. In contrast, about four out of five companies with more than 500 employees use salary range structures.

Frequency Salary Range Structures Are Reviewed

Salary range structures should be reviewed regularly to maintain a competitive edge in attracting and retaining top talent. Most companies with formal base salary range structures review their ranges and structures annually (Table 2).

Nineteen percent of participants with formal salary range structures reported that they do not use formal salary structures with executives.

Companies choosing "other/varies" indicated that the frequency for reviewing structures varies by type of job, business unit, location or union status. Examples include:

• Some companies with union employees review salary structures based on the length of multiyear labor contracts and review other nonunion jobs annually.
• Some companies in very competitive job markets review salary structures for critical jobs semiannually.

Methods Used to Design Salary Range Structures

The two most common methods companies use to design base salary structure ranges are market pricing using external market data and point factor focusing on internal pay equity.

Most companies use a market-pricing approach with current salary survey data for individual jobs, to design and adjust salary range structures (Figure 1). Only 3 percent of companies rely solely on the point-factor method, which assigns a point value to specific jobs within a company.

In addition, 19 percent of companies blend market-based and point-factor approaches when designing their salary range structures.

Traditional vs. Broadband Salary Structures

Traditional salary structures are organized with numerous layers and range structures (or pay grades) with a relatively small distance between each range. This provides a hierarchal system enabling employees to be promoted from one pay grade to another. When designed correctly, traditional structures enable the recognition of differing rates of pay for performance and guarantee a reasonable level of control over internal compression and salary expenditures.

Broadband salary structures are more flexible and consolidate pay grades into fewer structures with wider salary ranges.

On average, 82 percent of surveyed companies use traditional salary structures, while only 7 percent use broadband structures (Figure 2). Nine percent use a hybrid or mix of traditional and broadband structures.

Single vs. Multiple Salary Structures

Fifty percent of companies with salary range structures have multiple structures varying by job and/or geographic location. There is a strong correlation between job level and number of salary structures. Single salary structures are more common for executives and multiple salary structures are more common for nonexecutive positions (Table 3).

As companies increase in size, they typically have a higher number of salary structures to accommodate more locations and job structures.

Data source: 2010 Culpepper Salary Range Structure Practices Survey of 360 organizations.

Survey dates: August 26 through October 25, 2010.

Breakdown by size:

• Up to 100 employees: 11%
• 101 to 500 employees: 18%
• 501 to 2,500 employees: 28%
• 2,501 to 10,000 employees: 27%
• Over 10,000 employees: 15%

Breakdown by sector:

• Technology: 34%
• Life science: 10%
• Health care services: 8%

Breakdown by ownership/corporate status:

• Public: 43%
• Private: 35%
• Not-for-profit: 15%

Participants by location:

• United States: 95%

Culpepper and Associates conducts worldwide salary surveys and provides benchmark data for compensation and employee benefits programs.

Reposted with permission.

Source: 2010 Culpepper Salary Range Structure Practices Survey, November 2010. www.culpepper.com

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Manpower Requirements and Operations in a Business Proposal

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How to Create a Business Plan as an Entrepreneur

How to write a proposal on the introduction & marketing of bakery products, 6 types of business plans.

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Writing a winning business proposal can be a critical part of expanding your business. An informal meeting with a potential new client sets the stage, but a thoughtful, personalized business proposal can help you seal the deal. As you craft your business proposal, two important areas to consider are the manpower requirements of the project and the operational requirements of the project. These areas will help inform the project deliverables, milestones and overall budget.

Writing a Business Proposal

The purpose of a business proposal is to win new business, so it should be written with sales in mind. Some industries have a specific template that’s commonly used, so if you’re uncertain of the correct format, connect with peers in your network to find out proposal specifics. In particular, federal and state governments bids may have specific requirements that you need to meet.

In general, business proposals have five to six sections. These include an introduction, an executive summary, details about the project, deliverables and project milestones, a breakdown of the budget for the project and the conclusion. In the introduction, you can provide a brief overview of your business and why it’s well-suited for this particular project. In the executive summary, you can provide an overview of the project itself. Next, give more details about the project, including your operational and manpower planning.

Your deliverables and project milestones can be spelled out in the simple table. Your budget breakdown can also be delivered in a table and should include your manpower proposal for the project. Overall, business proposals tend to be relatively short and easy-to-read.

Manpower Proposal Considerations

Before you write your business proposal, consider the manpower you’ll need for this project. Your manpower requirements definition may include managers, front-line employees and employees with special skill sets required for this project. Define the roles of each member of your proposed team and how they will interact with each other. Estimate how long it will take for each team member to complete their portion of the project. Use that estimate to determine your manpower costs, keeping in mind their salary, their employee benefits, payroll taxes and other costs associated with their employment.

When you address manpower requirements in your business proposal, you may not need to include this level of detail. This level of planning can help you develop an accurate budget, though. Be sure to include a cushion for unexpected costs such as overtime.

Operations Proposal Considerations

Your operational plan will influence several areas of your business proposal. For example, it will play a large role in the section where you spell out the details of your project. You may want to include a brief description of how your product is made, as well as your supply chain. You should also describe the quality control measures you have in place to ensure a high-quality product or service.

As you develop your project budget, keep in mind operational requirements such as the type of physical space you’ll need, any special equipment you will need to purchase, any special materials you’ll need to obtain, storage costs and delivery costs. You may not need to go into this level of detail in your proposed budget, but using a high level of detail for planning ensures a higher level of accuracy, which can help prevent cost overruns.

• Fundera: How to Write a Business Proposal in 6 Steps to Win Clients
• Inc.: Business Proposals
• The Balance Small Business: Including Management and Human Resources in Your Business Plan
• The Balance Small Business: The Operations Plan Section of the Business Plan

Melinda Hill Sineriz is a freelance writer with over a decade of experience. She specializes in business, personal finance, and career content. She has worked in sales and has managed her own small business for more than a decade. She has also written content for businesses in various industries, including restaurants, law firms, dental offices, and e-commerce companies. Learn more about her and her work at thatmelinda.com.

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• Sample Letters

FREE 6+ Sample Salary Proposal Letter Templates in PDF | MS Word

Despite the abundance of instant, easy, and convenient alternatives, business letters remain the preferred method of formal and official method of communication between business partners, work colleagues, and other professionals in the business setting for a number of reasons. Aside from its ability to double as an official document, memo, notice, or formal complaint and request, a business letter also creates an air of professionalism and an appearance of credibility that an instant message does not.

Salary Proposal Letter

Sample counter offer letter - 6+ free documents download in ..., sample salary negotiation letter - 7+ examples in word, pdf, sample counter proposal letter - 6+ examples in pdf, word.

A salary proposal letter is not all that different from other kinds of business letters. See these Sample Letters for a quick guideline.

Increase in Salary Proposal Letter

Size: 88 KB

Job Salary Proposal Letter

Size: 185 KB

Salary Review Proposal Letter

Size: 87 KB

When writing any business letter, it is important to maintain a tone of professionalism. Use these Sample Proposal Letters as an outline when writing your salary proposal.

Although it would depend on your chosen formatting, most business letters would only require an inch of margin on all sides, an inch and a couple quarters the most.

Certain countries like China and the United Kingdom use A4-sized papers as their standard size. Other countries like the United States and the Philippines prefer the 8.5” × 11” letter-sized paper. For lengthier contracts, the legal-sized paper may be used.

Times New Roman is typically used as it has a conservative appearance, but other sans serif fonts like Arial, Gotham, and Georgia are also appropriate. Don’t use too small a font size nor too big. Size 10–12 is the preferred scope.

Salary Package Proposal Letter

Size: 11 KB

Salary Proposal Acceptance Letter

Size: 445 KB

Salary Proposal Cover letter

Size: 102 KB

Salary Proposal Letter Sample

Size: 110 KB

Tips in Creating a Salary Proposal

When writing a business proposal letter, particularly a salary proposal, make sure you do the following to ensure effectivity in your letters:

• Research salary and wage mean for your labor market. There are websites that show you how much the median salary is for workers in your field. Use this as the basis of how much you should be offering.
• Know how many people are in your field. Remember the old economics laws of supply and demand. The less people there are with your expertise, the more money you can demand.
• Check your country’s Bureau of Labor Statistics for information on salaries. The most valid and accurate would be from your area’s official labor statistics website, but you might end up under-pricing yourself as these sites don’t normally take into account individual qualifications.
• If in salary negotiations with a new job, calculate your salary range. This should be based on the job requirements and your credentials, years of experience, and the cost of living in your location. These information should be found online.
• Draft your proposal salary letter based on your research, performance, qualifications, educational attainment, and experiences in the field. Drafting a proposal salary letter would follow the same rules and tips for writing a Business Proposal Letter . In this proposal, mention your current salary, followed by data comparing it to the market rate. Propose a salary range with the data from your research backing you up.
• Be confident. Print up enough copies of your final document to distribute to your seniors and the human resources staff. If you’ve done the calculations right, then the amount you are asking for should be reasonable that you could face them standing up.

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Salt Lake City mayor proposes nearly $44k salary increase — for herself

Salt lake city council members would also receive raises under the proposal..

(Trent Nelson | The Salt Lake Tribune) Salt Lake City Mayor Erin Mendenhall during a meeting about the proposed downtown sports and entertainment district on Tuesday, May 7, 2024. The mayor has proposed a 26% salary increase for herself and city council members.

Salt Lake City Mayor Erin Mendenhall wants to give herself a raise.

City Council members are considering a proposal that would give the mayor and themselves a 26% pay increase in the upcoming budget. If approved, Mendenhall’s annual pay would jump from about $168,000 to nearly $212,000. Salaries for part-time council members would increase from about $42,000 to roughly $53,000.

Mendenhall’s spokesperson, Andrew Wittenberg, said in a statement that the mayor leads the most populous city in “one of the fastest-growing, most dynamic states” while earning less than most of her Cabinet.

“This compensation adjustment addresses a pay disparity both in comparison to cities and towns in the state and within Salt Lake City Corp.,” he said. “This position has not received a market rate adjustment in at least 10 years.”

Residents, Wittenberg insisted, would not feel a financial impact from the mayor’s raise.

Mendenhall has seen incremental pay increases since taking office. According to the state-run website Transparent Utah , the mayor earned about $151,500 in 2021 and nearly $158,000 in 2022.

This year’s proposed budget calls for giving all city employees a 5% raise.

Salt Lake City Council spokesperson Whitney González Fernández said a city ordinance requires that council member salaries be tied to the mayor’s salary. Because Mendenhall is proposing an increase for herself, it automatically triggers a proposal to increase council salaries.

Council members scheduled the first open hearing on the proposal for Tuesday night, the same night of the first dedicated chance for the public to weigh in on a potential sales tax hike that would support a downtown sports district.

[Watch here: SLC Council to hold public hearing in downtown sports district plan . ]

González Fernández said the timeline state lawmakers set in SB272 — the bill that allows the city to negotiate for an entertainment district — constricted the council’s flexibility on scheduling, and that the two hearings happened to fall on the same meeting date.

Another public comment period for the potential salary increases is scheduled for June 4.

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