Benchmarking & Custom Salary Surveys

Compensation and Benefits benchmarking can provide critical data to help employers make commercially-informed pay decisions and set their own pay rates at an appropriate level without paying more than is necessary.

Through this process organizations can offer a competitive and fair C&B package to both prospective and current employees, which is vital for attracting and retaining skilled talent along with the different preferences per employees’ generation.

HR & Business Leaders have to:

• Understand the implications of an economic downturn on their talent strategy
• Define the growing and new skills that will accelerate skills building internally,
• Identify non-negotiable talent investments that will allow their organization to drive growth
• Use market data to manage risk and accelerate internal skills building

A challenge that the HR Depts are facing is to reconcile the external pay market with internal equity.

Whether employees are being paid fairly or not, their perception of the matter influences their decision to stay or go.

Traditionally, raising base compensation and benefits have been the primary way employers attract and retain talent. While this approach may work for roles that need to be filled immediately, it can be extremely costly and temporary.

Salary benchmarking process typically consists of the following steps:

• Evaluation: What you ultimately want to achieve and what is the purpose of the exercise
• Classification: The way to compare roles via job matching, job evaluation and the rewards element (i.e., base salary, total cash etc.)
• Comparison: Based on different C&B data sources (General Surveys, Custom Surveys, Club Surveys) pinpoint the criteria for comparator group & C&B elements
• Adjustment: What adjustments you are going to plan and apply so as to ensure your pay is targeted at the correct market rate
• Monitoring: Salary benchmarking is not a one -off exercise due to change in economic circumstances and local labor market.