Formula for determining wages and special wages for employees

One of the classic problems of restaurant owners is “Staff shortage” Many shops have to close because employees stop working or resign. One of the reasons for employee resignation is being bought or other shops offering higher wages. Therefore, when setting wages, including special payments for employees, entrepreneurs must take into account competition in the market. However, it must be based on labor costs that are not too high to affect business results. Therefore, there must be a formula for setting employee wages as a guideline, as follows: Example of wages for restaurant employees (for competitive wages in Bangkok )

• Full-time waiters and kitchen staff, starting salary "total" = 11,000 baht (may be 10,000 baht salary + tip + diligence allowance)
• Experienced full-time waiter and kitchen staff, “total” salary = 12,000 – 13,000 baht

(This figure is the wage in Bangkok. In the case of other provinces, business operators should survey the area by looking at job announcements for various positions. There will be rates listed. Use that information to start calculating.)  What should wages be? First, you should position the employees in the store to see what main positions are actually required. Then, enter the salary for each position, considering that the employee salary is competitive in the market. Once you have the first point, estimate the possible sales each month, with labor costs at 15-18% of income. For example, if sales are 1 million baht per month, the total wages of the store should be between 150,000-180,000 baht. Take the information for each position and try to position it to see if the salary is over or not. Control it not to exceed 18% of income or, if it is going to exceed, it must not fall below 20%. Try walking around to survey the employee prices in the shopping malls in the area to help you know how much each restaurant pays per month and what benefits they have. Welfare that should be provided The word should have means that it is not necessary, but it is better if it is there because it helps to motivate employees. The benefits that should be there include:

• Diligence allowance: 500 baht per month. Employees must not be sick, late, absent or on leave during that month to receive 500 baht. However, if they are sick or late no more than once, they will receive 300 baht, etc.
• Welfare for transportation/food: 40-50 baht per day, only for days when you arrive to work on time and do not rotate work shifts.
• Monthly Incentive: If all employees help push sales to reach the set target, receive a cash prize of X,XXX baht/branch (for example, if you normally sell 300,000 baht per month and set a target of 330,000 baht, you will receive 5,000 baht to share)

However, when giving incentives based on sales, it must be taken into account whether the profits will decrease after giving them or because the incentives based on sales have not yet deducted other expenses.

• Birthday holiday: On an employee's birthday, the shop gives an additional day off for free on top of the normal holiday, and there is a cake for blowing out candles or small gifts to encourage them.

These are all guidelines for setting wages and special payments for employees. There may not be fixed rules, especially in terms of welfare. Entrepreneurs must consider what is appropriate in the area where the shop is located. But what I would like to leave with entrepreneurs is that employees are an important part of the business. Without employees, the business cannot operate. Therefore, putting yourself in their shoes is an important principle.