It is often difficult for employers to determine a wage range that will attract and retain the best talent without causing an unnecessary negative impact on the financials. Conducting salary benchmarking is the exercise of comparing salaries and benefits within your organisation, industry sector and/or the general marketplace. The exercise gives an impartial and accurate idea of pay information to help businesses make informed and effective remuneration decisions that helps to attract and retain employees.
As pay varies widely depending on the sector, conducting salary benchmarking exercises allows organisations to get an idea of these differences while at the same time finding out pay levels typical in their own sector so that organisations can be assured that they are paying employees consistently and fairly in comparison to the industry. Salary benchmarking can consider all aspects of remuneration to ensure it reflects the take-home total reward package.
Some benefits of salary benchmarking include:
- Improved retention rate – by reviewing salaries this ensures you are offering competitive reward packages.
- Improved employee engagement and morale – when employees feel there is a fair pay system, they are likely to feel valued and appreciated, thus more engaged
- Identifies gaps in potential reward package – allows you to adapt your offer according to market demand and current trends
- Unique selling point for prospective employees – helps to ensure that your benefits packages are competitive.
It can be difficult to know where to start when conducting salary and benefit package benchmarking given the significant volumes of data that is readily available on recruitment sites, pay clubs and special surveys etc. Enlisting a third party such as Centric HR to carry out this work can reduce this headache, giving you an independent viewpoint and detect any potential risks to the business such as equal pay issues. As opposed to other major outsourced benchmarking players, Centric HR spends the time to really understand and know your business to ensure that relevant and appropriate benchmarking is carried out.
For more details on salary benchmarking please contact us here.