Market pay is vital
Is the pay in your organization competitive with the pay in today’s job market? You can answer this question by taking a look at the quantity and caliber of the applicants who you are attracting. Equally, high employee retention rates demonstrate a great deal about your organization’s competitiveness in the marketplace. Regardless of what workplace studies reveal, working is about compensation. Working can be about much more, too, but the bottom line for people is that their work must pay their bills. Employees desire reasonable, viable, and market-responsive salaries. Compensation is the visible demonstration that an employee’s work is valued. Consequently, effective compensation is one of an employer’s most important and powerful communication tools.
Collecting market pay data
Therefore, the value that you assign to jobs in your organization’s compensation system should be driven by the most up-to-date information about market pay. You can obtain practical market pay data, which includes information about salary, benefits, and bonuses, from a continual analysis of the competitive job market. Large organizations, which have many resources and compensation professionals, might even design and administer custom surveys to regularly obtain market pay data. Smaller organizations must use market surveys conducted by national, local, and professional associations.
Or you can match your jobs to commercially available compensation studies that provide compensation information for:
- Your industry
- Your geographic region
- Your company size
- The number of people that you employ
- Your job descriptions
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