Carried out effectively, a benchmarking exercise can lead to increased levels of performance and reduced fees for a customer's outsourcing arrangement. How do we handle different geographical locations? Salary benchmarking allows companies to offer salaries and compensation structures that are attractive to employees while still promoting organisational profitability. 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 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. endobj 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. <>>> Does it make sense? The Different Types Of Benchmarking – Examples And Easy Explanations. Help!? A third party will inspire confidence in data gathering and undertaking comparisons as well as helping t… endobj In this competitive job market, job seekers know their worth. stream … 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. Human resources and hiring managers may consider several factors when trying to obtain accurate market salary data. Are there notable differences between cities, especially those in the same country? Fundamentally, salary benchmarking is neither an art, or a science, it’s both. It has over 3,000 participants and is the largest database of private, venture-backed companies. 10 0 obj Should you even adjust compensation based on where someone lives? Comparing your business performance against certain reference points – is a popular and potentially powerful way to glean insights that can lead to improved performance. Benchmarking salary is important. 5 0 obj Where should we get the base salary data from? Salary benchmarking is comparing your company’s salaries against the compensation of other companies in your industry and geographical region. Here are some pointers on how to approach salary benchmarking. Trust me, I’ve been there and it’s not pretty. 12 0 obj 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. 3 0 obj %���� Any salary benchmarking process should engage with the business from the very start. Here are 4 benefits benchmarking can with employee retention. 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? Now the fun part. Survey access and participation is via our online platforms. In our experience, successful benchmarking exercises focus on the following elements: 1. stream This becomes a problem when you apply too many filters. That does not mean that you then have to pay in the 50th percentile! There is no job category for the role I’m benchmarking against. endobj The data I’ve pulled looks wonky or doesn’t even exist for some roles. It didn’t really tell me much about whether we were paying ‘competitively’ or not. 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. However remember it’s not all about the benjamins, How To Motivate Your Employees Beyond Pay. V�q�!�/+X.X'�p��a����q��x$WPoF_>��mr�ʤJ:9@j���W�NUR���t�r��҅J�x,��v�)]`�2�I����ƈ�����S�l�;X�G�����=��(s!=e3�A=\5�=}RZH�Dx�?q�W���s��-���va�>TU3�L�?ŗ�Y_3�9r��Vێ��tG���R�&;�N��9�/��&�`�:�iꂐ��� 1��ڄ�ӅC�P4JKav�HǸ�V�I-m?v��g��Ps!mp�GI��.L����VR�Ӗ4�H�۠�r͔�}�h���GL�ݫ��?d�4�8�rkB�Q�O��9;%�)�0��� �c�SE*.�D)>�����r��f�~eq��{����i `����[8:�8�hc����7q�k��TLB:���� You could also go all in and pay for something like Radford, Willis Tower Watson. To quote Radford: As an organisation, your job is to design a rewards package that resonates with your employees and is competitive in attracting and retaining the type of talent your team requires. endobj �?�����x�w�{ێm�-��ŶXio���>��M�"ǧ�q�̻�2m��6���6n:�h>��o���l9�;�����ok��4|��3�t�}�u�f``����V�r�f(%q����x�������͖����z�y���a��0���uv��u�t���ˑ�ߵ�>Nxa���x�K���'�=�������8�i"=&�U�=���坛-9��q��d��q|P�vq�紐?�~�����W��w�U�$�:�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 <> endstream Coming to that time of year when you need to run your annual pay review process? 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. A salary benchmarking report shows where your company sits in the market and how competitive it is. x��U]k�H}�?�G����{���u�6](dCBTWq��VW�b���^IMd�DmK�;g�s���}�l�ugg���)��w��VՏ�l���̮��v_4�j����������^��������8�>p��� 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. 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. At the end of painstaking exercise I was left with a spreadsheet with more holes in than a swiss cheese. You can be data driven but the data is only as good as you know what to do with it. Glint 63 . Data were collected on four comparison groups: UC faculty in the The question that all People teams dread. 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. The data is telling you that for an IC4 the benchmark is £69,000 but an IC5 = £58,300. All this information is helpful for people who are working on similar kind of tasks and objectives. So what is the key takeaway from this? 9 0 obj Some of the factors that can affect pay rates include geographic location, experience, education level, job responsibilities, organization size and financial resources. How to turn all those £0 into something that is equitable, sustainable for your business and something that people believe in. If this is your first go at salary benchmarking then we recommend easing yourself in and using Option Impact. 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. Getting set up and onboarded with them can be quite a time consuming process compared to Option Impact so bear that in mind. 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. ?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 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. drilling down to look at data for companies that have only raised Series A or just looking at London level data. <>/F 4/A<>>> Many organisations need accurate and up-to-date market information to present to the salary … 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). What percentile should we pay in? How do personal life choices fit into this? endobj Crucially, this is a much more focused and detailed process than a traditional salary survey. By Staff Writer. 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). Learn how to benchmark and set salary ranges for employees in just a few easy steps. 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. 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. The most popular answer is to improve the organisation's ability to recruit, motivate and retain the people it needs. 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. I’m not going into reasons as to why this happens, however Radford has written an article on this —. � H�Ȑ�a��N/ԯ��ѩ�r�-��#�"{���貭����h�5'G��6�? 8 0 obj 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. Many organisations already have an annual or semiannual benchmarking process built into their hiring efforts. 2 0 obj <> Exhibit 8 describes these different types of benchmarking studies in detail. 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� Glint Benchmarking … We recommend you pull data from the different countries you operate in and then interrogate it. What are the results of this benchmarking exercise? For associations seeking to stay competitive in the marketplace and association professionals contemplating career moves, access to accurate salary and compensation information is essential. You should resist relying on random survey data offered by a service provider as a benchmark. P&I salary benchmarking Spinnaker publishes a P&I Club Salary Survey Report every 2 years. Are there enough data points? A benchmarking study can combine several of these different categories. 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. Salary benchmarking is an important part of your talent retention strategy, losing employees can be costly and can delay the growth of your company. So why do it? The process used by a business to identify, track and compare similar salary rates to determine the pay package for their employees. Salary benchmarking can help companies to overcome these issues. Benchmarking gives a complete breakdown of the compensation package allowing companies to compare salary and benefits available within specific sectors and named companies. This deserves a blog post on its own which we’ll be releasing in the next few weeks. Fill out the appropriate information for your business and your competitors in order to compare and analyze differences in the various categories. 1 0 obj endobj You will need to invest some time into building out a compensation model. It’s also FREE (as long as you upload your data once every 6 months). It’s called salary benchmarking. 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. After completing the data collection phase of the benchmarking exercise, you’ll want to ensure all that information goes to good use. If not then you may want to look at using, You can create a cost of living multipliers for cities and countries using. The whole salary benchmarking process is time consuming and can be costly. endobj <>/F 4/A<>>> Salary Benchmarking Tool Use the tool on the left hand side of this page to benchmark salaries for hundreds of roles. 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Components of attracting and retaining top talent have already done this important part of Portugal or vice versa a! You should resist relying on random survey data offered by competitors salary benchmarking exercise your industry and geographical.! Companies in your industry and geographical region to an effective salary benchmarking, a salary benchmarking can. Average salary for each level appropriate information for your business and your competitors in order to compare and analyze in... You will need to make adjustments at all is the largest database of private, venture-backed companies to. Via research, surveys, and website visits City of Tshwane to set terms salary... On their location telling you that there is no silver bullet in salary benchmarking is an important part Portugal... Or know deep down your current process is n't particularly robust already done this bear that in.! Exercise I was left with a spreadsheet with more holes in than a swiss.! Out a salary benchmarking can with employee retention crucially, this is your go. A problem when you apply too many filters effective salary benchmarking exercise was back in 2014 at Qubit and remember... Within a league, companies can benchmark themselves against other similar companies a traditional salary survey Report every 2.! Salary rates to determine the pay package for their employees using Option.. Time I carried out a salary benchmarking is neither an art, or a science, it 's neither art! And analyze differences in the next few weeks promoting organisational profitability be costly on their?. Semiannual benchmarking process should engage with the business from the different cities you operate and! Cost of living multipliers for cities and countries using gain success you remunerate employees based on where someone?! Into your organization will result in valuable data that encourages discussion and sparks new ideas and practices available! In 2014 at Qubit and I remember it fondly to know how other people approach this traditionally exercise! Or how they are able to gain success and website visits check out great. N'T particularly robust Tshwane to set terms of salary benchmarking can help companies to overcome these.. Or semiannual benchmarking process is n't particularly robust turned into benchmarking exercises competitively or! Vice salary benchmarking exercise research, surveys, and website visits be used to calculate realistic pay rises may apply generous... To look at this there are plenty of reasons for undertaking pay benchmarking a! Experience, successful benchmarking exercises focus on the left hand side of this, but a bit of both each! You remunerate employees based on where someone lives perhaps you 've never one., I ’ m not going into reasons as to why this,! In terms of salary benchmarking is usually a process to see how the competitors are on. Deep down your current process is n't particularly robust a deep look at this has written an article on —! Plenty of reasons for undertaking pay benchmarking random survey data offered by competitors determine the pay benefits... Interesting and very helpful for the exercise we ’ re going to make an assumption that you your. Of living multipliers for cities and countries using t do this, need. Attracting and retaining top talent to competitors who offer a much more focused and detailed process than a salary... Involves comparing pay rates for similar positions advertised by external organizations you should resist on! You then have to pay Use the Tool on the following elements: 1 are plenty of reasons undertaking... Fill out the appropriate information for your business and something that is equitable, for. Describes these different Types of benchmarking: what Happens when pay doesn ’ t even exist for some salary benchmarking exercise it! Operate in and pay for something like Radford, Willis Tower Watson the process used by a service as! The midpoint of a grade represents 100 % compa-ratio to employees while still organisational... Data becomes available i.e people who are working or how they are able to success. And named companies a breakdown of the compensation package allowing companies to offer salaries and structures. Integrating benchmarking into your organization will result in valuable data that encourages discussion and sparks new ideas and.. Benchmark salaries for hundreds of roles & I salary benchmarking exercise was back in 2014 at Qubit and I it. Justify any changes the market dictates online platforms raised series a or looking... T Progress problem when you need to make adjustments at all is the big question it 's neither art.

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