Companies use salary benchmarking to stay informed about how much compensation should be offered to people working for the company. It’s just a good business practice to have compensation that accurately reflects how much people are worth. If a business pays too much to employees, profits won’t be what they should be. If a business keeps overpaying employees, the business could eventually collapse. There is also the flip side. If a business doesn’t pay employees enough for the work that they do, turnover could be high. People will constantly look for other job offers. Turnover affects production. It also can affect costs because new employees will have to be trained. Using job evaluation takes the guesswork out of compensation. For most companies, it’s better to pay for salary benchmarking services instead of trying to conduct the surveys in-house.
Since these surveys are important for a company’s survival, a company has to get the best survey possible. This involves knowing what to look for in a survey. What is the survey methodology? Companies will provide a summary of the methods that they used to conduct surveys. It’s best that a company that conducts a survey does so by contacting professionals in the human resource field instead of individuals who aren’t associated with human resource departments. This will help to ensure the accuracy of the data that is collected.
How large is the survey? When it comes to survey size, it’s important to have a survey that is large enough to be relevant. It must cover enough jobs and regions so that enough information can be gathered. Understand that a salary benchmarking uk survey doesn’t have to cover an entire industry, but it must be complete enough to give a general idea of how much compensation should be offered.
When a company is looking for a survey, job titles and job descriptions must be looked at differently. There are times when job titles don’t accurately describe job descriptions. A person may have the same job title that another person has, but that person may be responsible for more job duties. This may lead to an increase in the amount of compensation for the person with more job duties. Surveys can also be thrown off by a person who has more job duties and is paid less than someone with a similar job title. It’s also important for a company to look at the effective date of the survey. A company shouldn’t just go by the published date.
Salary Benchmarking Surveys 