Why do we need a compensation survey

WHAT IS A COMPENSATION SURVEY? A compensation survey is a business procedure conducted for the purposes of determining the average salary to be paid to employees. The data is normally put together from several organizations and analyzed to give a picture of how much an employee in a certain job group or category needs to be paid. The survey may focus on just one job title or it may focus on several job titles in an organization. This data is then analyzed to help organizations in deciding how much they should pay an employee based on their job title, qualifications and experience.

IMPORTANCE OF Compensation SURVEYS TO ORGANIZATIONS Compensation surveys provide the requisite data to create competitive salary packages for organizations. The surveys certify that company compensation policies are internally equitable by ensuring that employees don’t feel that some staff members are being favoured or for some staff members, they don’t feel like they are paid too low. The compensation survey is also an important tool that is used for salary benchmarking. By coming up with a compensation survey companies know whether their salary scales are externally competitive and how they measure up to companies in the same category. This way the company is able to attract, motivate and retain the best professionals in the market.

Objectives OF a Compensation SURVEY Before a compensation survey can be conducted the organization will map out several objectives to be met. These may include: To collect information pertaining to standards in the industry. To get information about how similar companies are paying their employees. To create a reasonable and impartial compensation system To come up with competitive reward schemes for employees. To create a benchmark for compensation.

Types OF Compensation SURVEY We have two types of compensation survey: Standard survey – A standard survey is carried out annually or periodically by a company. The survey covers the same organizations for benchmarking purposes and produces almost similar analysis every year or period. Custom survey - A custom survey on the other hand can be conducted at random and seeks to answer to answer specific questions raised by HR or finance managers.

Scope Of the compensation Survey The organization needs to hire people or organizations who are professionals and well acquainted with the process of conducting the survey. Non professionals or amateurs may make the process skewed.

CONDUCTING THE COMPENSATION SURVEY - step 1- 3 The first step in conducting the survey is come up with a list of companies and and areas from which you intend to carry out the survey. Secondly come up with the list of occupations and job titles you intend to look at. Compare titles and occupations that exist in your company. For purposes of formal introduction, create a letter to be sent to this companies you want to profile. Ask for their permission to carry out the task. Provide your credentials and profiles of similar surveys you have conducted in order for them to willingly allow you to collect information about their company.

CONDUCTING THE COMPENSATION SURVEY step 4-5 Next, provide a confidentiality disclaimer together with the letter that states that the information will only be used for the purposes of the survey stated in the letter and that you will not divulge sensitive information about the companies to third parties. The next step will involve creating a questionnaire with specific areas that you want to cover like Job title, duties, responsibilities, special duties, training, job tenure and rank.

CONDUCTING THE COMPENSATION SURVEY – step 6-7 Next, collect all the surveys from all companies sampled in the survey and work out the average salary for each position. Include other additional information that may be important in the survey. Finally compile your reports in a format that is easy to understand. This data will be easy to interpret and may offer meaning to the whole survey. In some cases, you might need to provide both hard copies and soft copies of completed reports.

From the survey to implementation The following are the steps that will be followed from the start of the survey to implementation: Collecting information and infrastructure to support the survey. Reaching out to potential companies to use during the survey. Conducting the analysis. Coming up with the requisite pay brackets. Working out the costs of the different pay brackets. Evaluate and implement the new pay structures. Brief the employees about the new system and pay structures.

Data Collection methodology to be used The most effective methodology of conducting a compensation survey would be through: Interviews through a telephone An emailed questionnaire Interviews through skype or one on one conversations

HOW WILL THE COMPENSATION SURVEY DETERMINE THE PAY STRUCTURE CHOICE FOR YOUR ORGNASIATION Helps companies gather important information about users. Helps companies analyze this information Assists in tracking Key Performance Indicators. The key performance indicators may include: Number of visitors on the site Goal conversion rates, Number of downloads and keywords used.

Impact of compensation survey The compensation survey conducted will help organizations to streamline their remuneration options. The survey will help to determine: Flexible and competitive payment package A clear bonus scheme Various benefits and compensation for staff members Training gaps and future career planning How to offer incentive programs.

References Writer., B. C., & Read more..., B. C.. Compensation Surveys. Retrieved August 01, 2017, from http://www.salary.com/compensation-surveys/ Salary Reviews Retrieved July 31, 2017, from http://www.hr-survey.com/SalarySurvey.htm Compensation & Benefits. Retrieved July 30, 2017, from http://hrcouncil.ca/hr-toolkit/compensation-salary.cfm