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Have you considered that a 5 percent salary underpayment is enough to send your key talent to the competition, but not enough to motivate your marginal employees to leave?
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Did you realise that overpaying 25 employees by approximately 2 percent costs your organisation more than Rs 2 Mio and does little to motivate key employees to stay?
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Do you have a new role in your organisation and need to know quickly what pay and/or package to offer?
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Do you have a high turnover of staff in key roles, and do exit interviews indicate that salary is an issue?
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Do you require up-to-date salary and benefit information for the annual pay review process but have insufficient internal resource to “crunch the numbers”?
Salary benchmarking can help companies to overcome these issues. Crucially, this is a much more focused and detailed process than a traditional salary survey. Benchmarking gives a complete breakdown of the compensation package allowing companies to compare salary and benefits available within specific sectors and named companies. So, overall it is a much more exact science.
Perspective
Paying people fairly is good for business. Underpay, and employees will eventually look for a better offer. Overpay, and the payroll budget and profitability will suffer. That’s why companies use market data to research the value of their jobs. But what is “market data” anyway?
More than 80 percent of business managers and HR professionals said their companies either participate in or purchase at least one salary survey each year, according to a Salary.com poll.
Companies pay for compensation data because the benefits exceed the costs. The amount companies spend on surveys is just a fraction of a percent of their total payroll costs.
Why Salary Benchmarking …
In fact, compensation surveys have more to offer than meets the eye, and are more relevant than ever. Here are eight reasons why. With a compensation survey you can…
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Pay employees competitively. Take a look at most any company strategy and you’ll see a heavy emphasis on staying ahead of competitors. Whether it’s marketing, product design,– everyone’s interested in edging out their competition. One key area of competition that often gets overlooked, however, is salaries. By participating in credible compensation and salary surveys, you’re able to offer competitive salary packages that attract and retain top talent. On the flip side, a salary survey may help you identify areas in which you’re overpaying relative to the market, allowing you to control costs in a way that’s still fair to your employees.
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Adjust pay based on market conditions. In a constantly changing economic climate, keeping your company thriving requires staying in tune with the weather. Salary survey analysis identifies incumbents who are paid significantly less than the market, providing an opportunity to make adjustments over time to bring those salaries up to a competitive level.
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Establish salary ranges. Without compensation survey data, designing new salary ranges or adjusting pay structures amounts to shooting in the dark. Whether you’re using salary structure trend data to move ranges accordingly or trying to analyze the market to make more accurate adjustments in the future, salary surveys are your best friend.
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Estimate labor costs of competitors. Short of calling up competitors and asking about their salary structure (good luck with that one!), surveys can help you understand pay trends in your industry and geographic region, giving you a grasp on how much of your competitors’ funds go where
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Provide data for pay-related HR projects. Salary surveys are an unbeatable data source when it comes to HR-related projects, particularly in the realm of bonuses. When designing a bonus plan, surveys allow you to analyze each job to determine the actual bonus paid, the target bonus percent, the actual total cash delivered and the target total cash. Bridging GAPS surveys also report on a host of other pay-related programs such as hiring, retention and referral bonuses, stock options, on-call compensation and student pay programs.
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Get what you pay for. There’s a reason why I trust my doctor’s diagnosis over Goggle Answers; it’s the same reason why most companies find their survey data worth paying for. Sure, free information exists, and plenty of it. But when making decisions that put your company at stake, you need data you can count on.
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Be a “good citizen” in the HR community. No matter how competitive your industry is, we all do better when we collaborate. By sharing your own company data, you encourage other companies to do the same, thus helping to paint the most accurate picture of the market for everyone. We’ve been lucky enough to have a chart-topping level of repeat participation and our survey participants have seen the benefits. This type of stability creates consistent data that can be compared year-over-year for even more accurate annual market analysis.
…why Bridging GAPS
Bridging GAPS Salary Benchmarking provides an independent snapshot of the market base salary, total cash, short- and long-term incentives, as well as typical benefit prevalence for individual positions.
As a result, Bridging GAPS Salary Benchmarking provides you with a quick, reliable and cost effective means of surveying the marketplace, enabling you to:
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Develop salary bands and/or remuneration policies
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Improve employee retention
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Guide remuneration for new recruits
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Compare total cash and total remuneration packages with competitors
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Calculate next year’s salary increase budgets
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Target remuneration fairly and equitably
India Specifics
Compensation or Remuneration practices in India are not uniform. Because compensation or remuneration elements are different in nature and practice or in other words basic philosophy of remuneration differ from organization to organization and employer to employers.
If you take benchmark jobs for salary survey the job description also varies from company to company which will end up in job title match instead of job matching.
Further, for good survey point you have to select criteria of employers/companies and specific region to ascertain cost of living elements and market pricing of the benchmarked jobs.
What is available to you?
A single page statistical report per role, showing typical market pay and benefits information according to your date information on pay and benefits
prevalence to guide your specifications.
You will also receive an Executive Summary, highlighting any trends to have come out of your data, when requesting a minimum of 20 Salary Benchmarkings at any one time.
A complimentary report is also offered, regardless of the number of Salary Benchmarkings requested, expressing your organisation’s salaries as a percentage of the market upper quartile, median or lower quartile. There is no charge for this, however, relevant organisation information will be required to conduct the analysis.
