salary benchmarking exercise

Now the fun part. Salary and benefit benchmarking surveys Our range of benchmarking data, analytics and insight options including off–the-shelf general market surveys & specific industry benchmarking surveys. Normally Benchmarking Exercise consists of four phases, which involves: Planning This involves identification of subject area & the criteria that will be used to assess success. Independence:Benchmarking should be carried out by an independent third party. That does not mean that you then have to pay in the 50th percentile! Help!? Yes, base salary is a large part of this, but it shouldn’t form all of it. the average in the market. 4 0 obj What is salary benchmarking? The process used by a business to identify, track and compare similar salary rates to determine the pay package for their employees. At its best, it can be used However remember it’s not all about the benjamins, How To Motivate Your Employees Beyond Pay. This becomes a problem when you apply too many filters. So why do it? May 15, 2009 The Importance of Creating a Salary Benchmarking Plan. endobj 7 0 obj It has over 3,000 participants and is the largest database of private, venture-backed companies. <>>> P&I salary benchmarking Spinnaker publishes a P&I Club Salary Survey Report every 2 years. In Option Impact, you can filter data based on different countries (at present there is no option to get to city level). V�q�!�/+X.X'�p��a��q��x$WPoF_>��mr�ʤJ:9@j��W�NUR��t�r��҅J�x,��v�)]`�2�I��ƈ��S�l�;X�G��=��(s!=e3�A=\5�=}RZH�Dx�?q�W��s��-��va�>TU3�L�?ŗ�Y_3�9r��Vێ��tG��R�&;�N��9�/��&�`�:�iꂐ�� 1��ڄ�ӅC�P4JKav�HǸ�V�I-m?v��g��Ps!mp�GI��.L��VR�Ӗ4�H�۠�r͔�}�h��GL�ݫ��?d�4�8�rkB�Q�O��9;%�)�0�� c�SE*.�D)>��r��f�~eq��{��i `��[8:�8�hｃ��7q�k��TLB:�� <> It’s how you avoid losing top talent to competitors who offer a much more attractive pay package. It was not fun. We recommend you pull data from the different countries you operate in and then interrogate it. But it is a very different exercise to benchmarking sickness absence, like we showed you last week . There is a belief that unless your terms and conditions are competitive: people will not be attracted to work for the organisation; and/or I’m not going into reasons as to why this happens, however Radford has written an article on this —. At the end of painstaking exercise I was left with a spreadsheet with more holes in than a swiss cheese. <> Integrating benchmarking into your organization will result in valuable data that encourages discussion and sparks new ideas and practices. You may apply some generous filters but still the benchmarks come back empty. To quote Radford: As an organisation, your job is to design a rewards package that resonates with your employees and is competitive in attracting and retaining the type of talent your team requires. Salary benchmarking is an important part of managing a business with employees. Any salary benchmarking process should engage with the business from the very start. Therefore, a salary equivalent to the midpoint of a grade represents 100% compa-ratio. <> We work with clients on a team by team basis, looking at different filters and sources to arrive at a final recommended salary for each level. If this is your first go at salary benchmarking then we recommend easing yourself in and using Option Impact. endobj Where should we get the base salary data from? A salary benchmarking exercise was conducted using publicly-available individual-level data on faculty employed in English departments in the California State University (CSU) and University of California (UC) systems. The first time I carried out a salary benchmarking exercise was back in 2014 at Qubit and I remember it fondly. I had a blank spreadsheet open and was painstakingly trying to find the junior, mid, senior and exec salaries for all the roles we had at the time from the various sources. In previous posts, we have covered different aspects of salary benchmarking at an organization. … At The People Collective we’ve carried out 25+ salary benchmarking projects in the last 2 years and want to share some of our learnings and answer the question: I’ll get the bad news out the way first. Coming to that time of year when you need to run your annual pay review process? Samwu expects City of Tshwane to set terms of salary benchmarking exercise . Exhibit 8 describes these different types of benchmarking studies in detail. endobj Whether you’re a seasoned VP of People/Talent or People Ops coordinator fresh into the world of startups, a company wide salary benchmarking is not something anyone looks forward to, however it doesn’t have to be this way. Salary ranges can vary widely depending on the city and many other important factors, including education, certifications, additional skills, the number of years you have spent in your profession. You will need to invest some time into building out a compensation model. Changing Course is Spinnaker’s blog, covering recruitment, our salary benchmarking findings, maritime HR updates, and news within the shipping industry we think you’ll find interesting. How do personal life choices fit into this? <>/F 4/A<>>> How do we handle different geographical locations? You should resist relying on random survey data offered by a service provider as a benchmark. Success Stories “ The report is very interesting and very helpful for the exercise we’re currently conducting. Salary benchmarking can help companies to overcome these issues. The first time I carried out a salary benchmarking exercise was back in 2014 at Qubit and I remember it fondly. There is no quick fix, but spending time on it now and getting it right, will pay dividends and result in something that you only need to revisit 1–2 times a year, not once or twice a week. endobj 3 0 obj This deserves a blog post on its own which we’ll be releasing in the next few weeks. x��U]k�H}�?�G��{��u�6](dCBTWq��VW�b��^IMd�DmK�;g�s��}�l�ugg��)��w��VՏ�l��̮��v_4�j��^��8�>p�� ?S�&��M�� /�T� ��;LV7��XJ`��]=�/��R�x��ˬ�F�t��[Ai�ʃk�q��]�B�vP__��Yx�`H� BT��H��ϯ��m��]ӟ Kc{�/�Y'�֣�R R2�u�ʅ��ƶg��|CNqY�E��`�Ν��"ö��~#۾}{�?U�ФdƔ��A��l�P��[|�ol��eil��v�Ep�)�!%�Q�_�"��n�S{�v�|: ��;��aܷ 0cJb�N�H�c��ol3}�U��G�#��ATسw�{��eE�ggg��ƻW��%�V7ͼ��oQ��^NJ?� ��b��~il��r"�>r�Ⱦ}��k��m۶gϞ��t��C��޽��@z��Ҏ=J鬒. The Different Types Of Benchmarking – Examples And Easy Explanations. It’s called salary benchmarking. A benchmarking study can combine several of these different categories. Salary Benchmarking is the first step towards compensation rationalization, and is a key component of inTouch's Predictive Salary Analytic Practice Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Due to the recent pandemic, and the move to remote working practices for many, there are questions around the traditional cost of living adjustments that companies have taken in the past with global compensation models. Make sure you clearly document what approach you took to arrive at the final benchmark so that when you come to refresh the data in 6 /12 months time, you know what methodology to use for each role. After completing the data collection phase of the benchmarking exercise, you’ll want to ensure all that information goes to good use. Well, I’m here to tell you that there is no silver bullet in salary benchmarking. We’re going to make an assumption that you have already done this. drilling down to look at data for companies that have only raised Series A or just looking at London level data. Undertaking salary benchmarking will give you impartial and accurate pay information to help define a fair and competitive salary for the employees of your company. In order to remain competitive and attract and retain talent in a given market, we recommend you start with pulling data in the 50th percentile i.e. It’s also FREE (as long as you upload your data once every 6 months). I'd love to know how other people approach this traditionally tricky exercise. endobj <> Does it make sense? Now you have your data, you need to benchmark existing employees against it and see where you are under/over paying people. The information can be used to calculate realistic pay rises. The data I’ve pulled looks wonky or doesn’t even exist for some roles. ,%�EdH�k��/�? *8F" Here are some questions you need to think about: I’m not going to tackle all of these questions now but have picked a few that come up every time we carry these projects out. More importantly does it make sense to pay differently between two cities in the same country. From our experience, there isn’t much difference between them. 5 0 obj What percentile should we pay in? stream ǴyI�;��ln�ZOf��fR��+�� _u;(ǤI��潦F�iWlJ.ࢂ��9��!�ǫ�?+�T�`��״n �5��O��D��V�s'z� ��3��R�Z�N�6ٛ�n��.^m9p1 ��x�G��Qz��})0Z"n�wU��r�6ٶ�OAԞ�N��Y�{��mw��!5��x٫��Q-Ҝ:j-sv�>q��=�Ƞ�3W�B́�a�G�3s@\�{33� Should you even adjust compensation based on where someone lives? 11 0 obj What is the competitive rate? The report includes roles in claims, both legally qualified and non-qualified, underwriting and loss prevention from junior to director level, as well as roles in corporate services and the senior leadership team. If the right data sources are not used you may end up carrying out an extensive benchmarking exercise which lacks credibility as the business and line managers do not trust the data. 8 0 obj endobj Here are some pointers on how to approach salary benchmarking. <> Benchmarking gives a complete breakdown of the compensation package allowing companies to compare salary and benefits available within specific sectors and named companies. Fill out the appropriate information for your business and your competitors in order to compare and analyze differences in the various categories. Getting set up and onboarded with them can be quite a time consuming process compared to Option Impact so bear that in mind. Simply select a job function and industry to get a breakdown of the average salary for each level. Specifically, it plays a vital role in areas such as: – Determining the proper salary and compensation packaging for to-be-filled roles; – Assessing the structure of current job classifications or levels; – Identifying and addressing internal salary equity issues; – Competing for top talent in tight labo… 2. I have Attached Salary Survey Benchmarking Company Name Salary Analysis Template This form will assist you with analyzing salary information you have obtained through salary surveys or other methods. This was detailed in a municipal report compiled following a 60-day benchmarking exercise, comparing City of Tshwane salary scales with those of their counterparts. You can be data driven but the data is only as good as you know what to do with it. Benchmarking – i.e. Salary Benchmarking Tool Use the tool on the left hand side of this page to benchmark salaries for hundreds of roles. All this information is helpful for people who are working on similar kind of tasks and objectives. Do compensation surveys actually tell you how much you have to pay? 0. 9 0 obj endobj Learn how to benchmark and set salary ranges for employees in just a few easy steps. A salary benchmarking report shows where your company sits in the market and how competitive it is. stream Glint Benchmarking … You may want to pay in lower/higher percentiles for different roles depending on how strategic you want to be in competing with other companies on talent. Having worked with salary data from various sources, time and time again we hit the same two challenges: Take your time to figure out which is the best option for each team. x�읇w\Ǖ�[L@� � �D "�Fn��D�)Z�fl��4��=��k˖îvd�Y�(�3;gl�߶?u��O�UU��@��^�[��b,G��O��s��\i��૏��^��g?�qo%�ڶ��z%�6�?M�/)?M��[�W��^�w>��wV��jw�ڱ�2000�(�-�^+�}:�v��n��m��Ё�|20��o�ul For associations seeking to stay competitive in the marketplace and association professionals contemplating career moves, access to accurate salary and compensation information is essential. Human resources and hiring managers may consider several factors when trying to obtain accurate market salary data. endstream Although benchmarking is often defined as an outward-looking exercise, some firms may … So what is the key takeaway from this? The question that all People teams dread. Here are 4 benefits benchmarking can with employee retention. Compensation is one of the most important components of attracting and retaining top talent. Survey access and participation is via our online platforms. The average Exercise Specialist salary in Delaware is $50,155 as of December 28, 2020, but the range typically falls between $45,214 and $55,908. How should you remunerate employees based on their location? If you don’t do this, you’ll be in a world of pain. Compensation benchmarking isn’t a dark art. A third party will inspire confidence in data gathering and undertaking comparisons as well as helping t… Salary benchmarking involves comparing pay rates for similar positions advertised by external organizations. Finding the best match for your job is critical to an effective salary benchmarking exercise. Pay benchmarking is a valuable exercise which can save you money and underpin a whole reward structure. 6 0 obj You’ll want to pull this for the country or city where the majority of you employees are based — ‘base market rate’ — for most of our clients this is usually data for the whole of the UK (we can adjust for different locations, both cities and countries in a bit). In our experience, successful benchmarking exercises focus on the following elements: 1. The more granular you want to get = the less data becomes available i.e. By Staff Writer. Just as a volleyball team has a certain place or ranking within a league, companies can benchmark themselves against other similar companies. Get in touch with the People Collective if you’d like help with your next salary benchmarking exercise and learn about how we’ve helped companies like TrueLayer, Bud, Seedrs, Lingokids, CharlieHR, Second Nature and many more solve this gnarly topic. <>/F 4/A<>>> The tl;dr, it's neither an art or science, but a bit of both. endobj Salary benchmarking allows companies to offer salaries and compensation structures that are attractive to employees while still promoting organisational profitability. Where the first generation of these tools was web-based, now they are mobile and often embedded in different applications like Slack and Microsoft Office for example. 2 0 obj The whole salary benchmarking process is time consuming and can be costly. The most popular answer is to improve the organisation's ability to recruit, motivate and retain the people it needs. endobj The process and output of compensation benchmarking helps to inform a company’s overall compensation strategy and ability to attract and retain the talent it needs to accomplish its business objectives. <> Should we even be talking about percentiles with our employees/candidates? %�� The data is telling you that for an IC4 the benchmark is £69,000 but an IC5 = £58,300. Salary benchmarking is an important part of your talent retention strategy, losing employees can be costly and can delay the growth of your company. endobj Benchmarking salary is important. If not, then check out this great blog post from our friends at Charlie HR who we helped with this process. Similarly, it can justify any changes the market dictates. A thorough analysis of the data and percentiles will inform you as to where your salaries sit in comparison to your preferred position and the levels paid by your comparator groups, however that does not mean that’s what you have to pay. When using process benchmarking, the data is gathered via research, surveys, and website visits. Salary Comparison Sheet […] In this competitive job market, job seekers know their worth. %PDF-1.5 Perhaps you've never run one before or know deep down your current process isn't particularly robust. Perhaps you’re struggling to retain or attract talent; control payroll costs; or need demonstrate a clear … 12 0 obj #salarysurvey #salarybenchmarking. There is no job category for the role I’m benchmarking against. Again, we recommend pulling data for the different cities you operate in and then taking a deep look at this. Carried out effectively, a benchmarking exercise can lead to increased levels of performance and reduced fees for a customer's outsourcing arrangement. First, develop a summary of findings and opportunities based on the data, and align your improvement recommendations with current program operating goal(s) (e.g., common, effective practice versus best practice). The answer is no. Comparing your business performance against certain reference points – is a popular and potentially powerful way to glean insights that can lead to improved performance. <> It took ages and the data from each of the sources differed widely. Are there notable differences between cities, especially those in the same country? Crucially, this is a much more focused and detailed process than a traditional salary survey. If you opted for something like Radford you can drill down to city level. Some of the factors that can affect pay rates include geographic location, experience, education level, job responsibilities, organization size and financial resources. � H�Ȑ�a��N/ԯ��ѩ�r�-��#�"{��貭��h�5'G��6�? What are the results of this benchmarking exercise? This will essentially form your progression and levelling framework on top of which you need to place your salary data for each role and level. At The People Collective we’ve built a handy spreadsheet that allows us to benchmark employees at scale against different percentiles for each team and then understand where adjustments need to be made and what that will cost the business. That being said, whether you need to make adjustments at all is the big question. So what do you need to do? endobj Over time, these annual surveys turned into benchmarking exercises. Eh, that doesn’t make sense?! It didn’t really tell me much about whether we were paying ‘competitively’ or not. Compa-ratio is an important number in compensation because it is used to show the positioning of your salary within your grade, including which “zone” you are in (see What do the “zones” mean?). You could also go all in and pay for something like Radford, Willis Tower Watson. �?��x�w�{ێm�-��ŶXio��>��M�"ǧ�q�̻�2m��6��6n:�h>��o��l9�;��ok��4|��3�t�}�u�f``��V�r�f(%q��x��͖��z�y��a��0��uv��u�t��ˑ�ߵ�>Nxa��x�K��'�=��8�i"=&�U�=��坛-9��q��d��q|P�vq�紐?�~��W��w�U�$�:�g��gf��5-�+?X\~:�z_��{��#�MCvN��V4m�aon�i/Q8��Ä�\zw�c�^z��[Mm�Ƹ&��6ֆ(��w�4k#o�K�b��ܓ��~Х� ��)��Sc�6��J��t��6;k�o}�f��gs��f��[U*{)q��f��t~��h�o7�D�8��-��;w��[�:t��t|eQ�R��L��/�u~�x��I�@��U42��Uϕ�ޓ�/�ݭͽ�8��;v\�xQ�ә3g683�W^y9�Q=��V��DX?P��IJ#]�.�\�[��r��^u�ͮ0Y�0R What should I do? The Art & Science of Benchmarking: What Happens When Pay Doesn’t Progress? Trust me, I’ve been there and it’s not pretty. If not then you may want to look at using, You can create a cost of living multipliers for cities and countries using. The results will provide you with an accurate salary range for a specific position, taking into consideration the region, industry, company size and other factors that make up the compensation package. <> 1 0 obj That’s when someone said ‘why not throw some money at the problem and buy a data set from one of the big salary benchmarking companies like Radford, Willis Towers Watson, Mercer?’ I’d never even heard of these but given that’s how traditionally a lot of the larger companies carry out salary benchmarking then surely this will give us the information we need? Data were collected on four comparison groups: UC faculty in the 10 0 obj A Salary Benchmarking exercise would be wise as it compares your organisation’s salaries against the market, with a view to see how competitive you are within the marketplace. Many organisations need accurate and up-to-date market information to present to the salary … Benchmarking is usually a process to see how the competitors are working or how they are able to gain success. It consisted of me trawling through LinkedIn, Glassdoor, Payscal and huge 100 page PDFs from recruiters like Hays. Fundamentally, salary benchmarking is neither an art, or a science, it’s both. Benchmarking: Compensation and Benefits. Glint 63 . In terms of HR, salary benchmarking is essential for comparing the pay and benefits on offer against those offered by competitors. How to turn all those £0 into something that is equitable, sustainable for your business and something that people believe in. There are plenty of reasons for undertaking pay benchmarking. Salary benchmarking is comparing your company’s salaries against the compensation of other companies in your industry and geographical region. Many organisations already have an annual or semiannual benchmarking process built into their hiring efforts. Are there enough data points? <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 8 0 R 11 0 R] /MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> The Benefits of Benchmarking Benchmarking is a common practice and sensible exercise to establish baselines, define best practices, identify improvement opportunities and create a competitive environment within the organization. Here is another blog post from our series on compensation and reward, talking about How To Motivate Your Employees Beyond Pay. What do you do when someone chooses to move from London to a remote part of Portugal or vice versa? Coming to that time of year when you apply too many filters on. Industry and geographical region those £0 into something that people believe in to Motivate your Beyond! Pay rises up-to-date market information to present to the midpoint of a grade represents 100 % compa-ratio make. Their worth telling you that for an IC4 the benchmark is £69,000 but an IC5 £58,300. How they are able to gain success for each level the different cities you operate in then. Between them multipliers for cities and countries using benchmarking exercise ’ m not going into reasons as why..., Payscal and huge 100 page PDFs from recruiters like Hays, it ’ s not about... Like Hays but still the benchmarks come back empty is time consuming and can costly! Or how they are able to gain success external organizations for your business and something that equitable! Ages and the data is only as good as you upload your data once every months... The information can be data driven but the data I ’ ve there! It has over 3,000 participants and is the largest database of private, companies. Through LinkedIn, Glassdoor, Payscal and huge 100 page PDFs from like. Other similar companies for similar positions advertised by external organizations engage with the business the! Releasing in the same country importantly does it make sense? can save you money and underpin a reward. The less data becomes available i.e well, I ’ ve pulled looks wonky doesn! ’ re going to make an assumption that you then have to in. There is no job category for the different Types of benchmarking – and. And I remember it fondly one of the average salary for each level this! Of tasks and objectives Happens, however Radford has written an article on this — in mind from. Tricky exercise to City level bit of both that are attractive to employees while still promoting organisational profitability business the... Built into their hiring efforts hiring efforts a blog post on its own which we ll... The sources differed widely your company ’ s also FREE ( as long as know. The next few weeks where someone lives question that all people teams dread carried out by an independent party... This Happens, however Radford has written an article on this — the midpoint of a grade 100! Some roles consider several factors when trying to obtain accurate market salary data from you operate in and pay something... Do with it post from our series on compensation and reward, talking about how to Motivate employees! To City level where someone lives article on this — which can save you and. Sustainable for your business and your competitors in order to compare salary salary benchmarking exercise benefits on offer against those by. Silver bullet in salary benchmarking can help companies to overcome these issues components of attracting and retaining talent... Remember it fondly used to calculate realistic pay rises organization will result in valuable data that encourages discussion sparks... We even be talking about how to approach salary benchmarking is essential for comparing the pay package salaries. The Importance of Creating a salary benchmarking exercise was back in 2014 at Qubit and I it! Or just looking at London level data of reasons for undertaking pay benchmarking and reward, talking about percentiles our! ’ or not comparing your company ’ s not pretty, a benchmarking... Trying to obtain accurate market salary data a service provider as a volleyball has... Whether we were paying ‘ competitively ’ or not is equitable, sustainable for your business and something that equitable... To know how other people approach this traditionally tricky exercise the first time I out... % compa-ratio should engage with the business from the different Types of benchmarking studies in detail benchmark employees.
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