What is Salary Benchmarking?
Salary benchmarking, also known as ‘compensation benchmarking’ is an in-depth research of the true market value of a given role.
Opposed to a basic salary survey, which will provide average salaries based on only a select few metrics, salary benchmarking provides far more detail and takes into account a range of factors which have a bearing on an individual’s salary package, including their location, education level, market sector, company size and experience level.
The information gathered in every benchmarking exercise is bespoke to an individual client’s needs. The idea is that by analyzing the market and your competitors, you can identify and establish a reliable set of benchmarks against which you can set your own salary offers. This will allow you to not only compete for the best talent but do so without overpaying.
Why is Salary Benchmarking Important?
Salary is often the difference between retaining employees and losing talent to your competitors. Benchmarking salary offers employers invaluable insight into how other companies within the same sector are structuring their own pay and benefits packages.
Salary benchmarking considers and separates the different elements of these benefits packages, giving organizations a much clearer understanding of what other executives are being offered in addition to their standard pay. This information can often be key for increasing employee engagement, reducing staff turnover and attracting high-quality talent.
Key Areas of Investigation & Analysis
Why do I Need It?
An accurate and efficient salary benchmarking service can be highly valuable. It allows hiring managers to make an informed decision based on verifiable and unbiased information.
In order to recruit and retain the most capable individuals in the industry, it’s imperative to ensure they receive a salary package that compensates them for their experience, qualifications and capabilities.
By undervaluing existing employees, you run the risk of losing them to competitors, while offering below market value when recruiting will all but guarantee you missing out on the best available talent.
Due to these challenges, we have found an increased demand for our in-depth salary benchmarking services.
How Can You Benefit?
As a result, Khano HR Solutions salary benchmarking provides you with a quick, reliable and cost-effective means of surveying the marketplace, enabling you to:
Develop salary bands and/or remuneration policies.
Improve employee retention.
Guide remuneration for new recruits.
Compare total cash and total remuneration packages with competitors.
Calculate next year’s salary increase budgets.
Target remuneration fairly and equitably.
What is the Process?
A detailed brief is taken from you in confidence which investigates the reasons behind the salary benchmarking exercise and what you wish to achieve from it.
Once we have established the objective, we will develop a benchmarking plan, which will include our approach and the information we will gather.
3. Data Gathering:
There are many approaches to gathering the necessary information, most of which make use of our extensive network of industry contacts. We will proactively gather all information highlighted in the consultation phase.
4. Progress Report:
Before preparing our final report, we will discuss our current progress with you and welcome any feedback. This is to ensure that the final survey meets with your expectations and delivers truly useful and actionable data.
The electronic report is delivered to you and any questions are answered.