How it works

Organizations seeking effective and relevant compensation benchmarks must identify and compare the same elements to avoid negatively impacting their decision-making process. Therefore, a proper methodology for identifying the organization’s roles and skills is important to build a robust analysis and provide qualitative and quantitative insights that add value to the organization’s broader human resources framework.

It is essential also to have a clear understanding of the reasons why the organization would need benchmarks: (i) realize where the organization sits in comparison to other relevant / target organizations; (ii) address any potential gaps vs. targeted market practices; (iii) drive an effective compensation strategy that maximizes resources while navigating complex market conditions and balance stakeholders’ and employees’ expectations; and (iv) comprehend what recent changes have occurred in the relevant marketplace and what are people looking for when deciding to join an organization. Compensation designers must acknowledge that salary surveys only represent a sample of the market. The following steps guide and illustrate on significant implications of benchmarking.

looks_oneIdentify the distinct types of surveys available in the market