Salary Surveys Overview
The salary surveys are extremely powerful compensation and benefits benchmarking tool. They are important for the setting right compensation strategy and for following and monitoring the desired pay market.
The salary survey is provided by the external compensation consultant, who gather the compensation information and salary details about the individuals, match the information and provides feedback about the pay market and pay structures back to the participating organizations.
The salary surveys are always based on the proper job evaluation methodology, which is standardized across the industry as the compensation consultant can compare the jobs with the same job size as the job titles are not the suitable for the salary comparisons. The company has to choose the right and suitable job evaluation methodology and this know how is usually provided by the compensation consultants for free.
Salary Surveys Benefits
The salary survey measures the competitiveness of the organization on the pay market and provides the benchmark information about the salaries on the general pay market and the specific industry pay markets, when the organization operates on several pay markets.
The salary survey helps to set the internal compensation policy and to set the right optimal salaries for each job and to keep the desired position on the pay market as defined by the compensation strategy.
The salary surveys provide the information about the average salary review percentage and the allocation of the growth of the salaries into specific job positions across the participating organizations. The salary survey can act as a tool to identify the key job positions in the organization as the competitors can protect the key job positions and it is usually visible in the salary surveys.
The salary surveys provide the information about the new trends in the compensation and benefits area and many surveys bring the additional information like the average number of employees per manager, the average length of service for the company, the number of promotions and many other.
What is important to know about Salary Surveys?
The participation in salary surveys is a difficult decision as the organization has to choose the right compensation consultant. The salary survey needs a standardized approach to the job position creation and the job position evaluations as the results of the salary survey are credible and useful.
Human Resources has to have a clear plan for the usage of the salary survey results and the presentation including the action plan has to be prepared for the top management.
The salary survey is about strictly confidential data and the compensation consultant has to be widely recognized for the data privacy practices and has to present the large population of the participating organizations in the salary survey.
How to participate in Salary Surveys?
The organization has to select the right compensation consultant, who brings the methodology for the job evaluation and determining the job size. The organization has to evaluate all job positions and prepare the salary data in the predefined structure as the compensation consultant compares the right data.
The good compensation consultant will prepare a detailed implementation plan and will act as the project manager for the first initial salary survey and will provide the help, when Human Resources prepares the salary survey results presentation.