What is a salary survey?
Decisions on what to pay new employees and how to compensate tenured ones deeply influence the morale, longevity and, ultimately, the success of your business. We are leading HR Consultants that help clients benchmark job positions in line with the industry market trends to ensure sustainable business models.
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When was the last time your organization conducted a salary survey when coming up with its compensation strategy?
Perhaps, you are not even aware of what the term “salary survey” refers to. A Salary survey is carried out by organizations to determine fair and competitive compensation for their employees. As HR consultants we analyze compensation data amassed to develop an understanding of the compensation structure your organization uses, and, to ascertain how effective it is.
Organizations are always quick to audit various aspects of their organization but turn a blind eye to their internal salary survey, dare to be different. As smart leaders know, an organization’s employees are its greatest asset and without them, it would not be smooth sailing when carrying out day to day activities.
Ensuring your employees are fairly compensated shows that you care about their financial position thus boosting their morale to perform exemplarily. Study shows that companies that fail to carry out a salary survey record high numbers of employee dissatisfaction, poor employee engagement as well as high turnover.
How to perform a salary survey
Carrying out a salary survey may be a daunting and vigorous process, despite this, it is a necessary process. A salary survey has the ability to give your organization a competitive edge in the market subsequently elevating the company. The steps of conducting a salary survey show you how you can conduct a salary survey, they are as follows:
The first step requires you to define the labour market to know what jobs and opportunities are out there in the market. Secondly, you will be required to compile detailed descriptions of the jobs you have in your organization that you need data on, this way you ensure your search is precise and accurate.
The process of collecting data then follows and is thoroughly vigorous. The collected data collected is then compiled. Lastly, the results of the salary survey are generated.
Benefits of conducting a salary survey to get an edge
- Benchmarking
Benchmarking comprises evaluating and checking something against a point of reference. Regarding salary survey, this involves conducting a comparative analysis with your peer organizations or those you look up to.
Benchmarking requires you to keep close tabs on salary, job trends in your specific industry as well as of companies you share similarities with. Salary benchmarking enables your organization to identify internal opportunities for improvement.
This process ensures that impartial data is at your disposal thus enabling you to make informed decisions when coming up with your organization’s compensation salary. Salary benchmarking every three years ensures your company makes the best financial decisions in the best fashion.
2. Validate and verify if employees are paid at the market rate
Given the ever-changing job market, some job positions are bound to increase in value, making them “hot” while others decrease in value. Salary survey enables human resource officers to keep abreast with the wage levels and trends in the market.
Your organization will be able to strategically determine the wage levels for various positions based on the market rate. You will then be in a position to establish which salary percentile your company falls in. This will ensure that your employees are equitably compensated.
When your employees are subject to adequate salary and benefits, you increase the odds of talent retention. Deriving from the data collected from the salary survey, you are able to see what your competitors offer in terms of compensation and level that or offer better.
3. Access to accurate salary data when required
Carrying out a salary survey enables your organization to get hold of current data in regard to compensating your employees. This data comes in handy when your organization has identified a top talent in the industry and wants to give them an opportunity to revitalize the organization.
Using the information, you are able to offer a fair deal to the prospective employee and they are unlikely to turn the offer down seeing that they will be fairly compensated for their input. This enables your organization to have an edge over its competitors by having the best talent in the industry.
Having current and accurate data on salary survey is of importance; the data stops you from price-fixing. Price-fixing is when companies set compensation rates based on sharing information, internet searches and networking.
This information when compared to data from a salary survey is not credible, therefore, using this information is not advisable when setting your compensation strategy in place. Data from a salary survey stays current and credible hence why it is important for your company to do this.
4. Beneficial for employee morale
As aforementioned, employees are a company’s greatest asset and smart employers know that happy employees result in happy clients. When your employees receive fair compensation, it reflects in their work.
Study shows that many a time employee turnovers are propelled by hope for a better salary, bonus, and other benefits in other companies. In order to curb this, it is imperative that your company conducts a salary survey in order to fairly compensate your employees and retain them in your organization.
Investing in a salary survey is protecting your investment in your employees, hence why your company should invest in one. Salary survey guarantees your employees that you care about their financial wellbeing subsequently enhancing their productivity in the workplace.
Evaluating your compensation structure every three years is recommended so as to reduce employee turnover as well as increase company morale. Given the dynamic market, companies need to keep up with the emerging compensation and benefits packages so as to stay on top of their game.
5. Dependable data
With dependable data from a salary survey, you are able to make well-informed decisions when it comes to your compensation structure. Credible information indicates that you will align your employee’s salaries to the market rate along with considering what packages will best complement the salary and make your employees feel valued.
In conclusion, implementing a salary survey every three years in your organization will definitely propel your organization to greater heights.
Flexi Personnel offers a broad range of HR solutions to companies and organizations of any size. For more information on our services, please feel free to contact Flexi Personnel to discuss your specific requirements.
