First of all,you need to have a compensation philosophy i.e,what do you want to achieve through your compensation policy-do you want to attract the best and retain them?Do you want to reward high performance ,do you want to remain within the budget etc
Secondly,find out the nature of your labour market.Do you need to spend alot on pay to get the very best ?How hard is it to get the stars?
You will need to understand the industry too.Find out the industry benchmark.What is the competition offering?
It becomes hard before it becomes easy!
*It pays to reward competitively unless you want to remain with people who only watch the clock and the calendar.Good people/achievers know what the want-they rarely complain about pay,they only move on!
28th December 2006 From Kenya, Mombasa
To start the work on compensation survey, first and foremost, you develop a contact with other HR members in your industry. You share your job profiles(level wise) & median data with them. Ask the same from their side also. Comapre the job profiles and the salary data with your company's data. These are the steps that one should carry out before the revision of salary.
Or else, you can hire a consultant and ask them to do this for you company.
11th October 2007 From Germany
Its very nice project you have got.
Before starting to this project you need to start to have good contacts with other HR people in similar type of industry. Secondly as per your requirement prepare one questionnaire & then start taking survey in similar type of industries.
While making questionnaire, please consider following topics -
1. Why u r going for this study - Objective?
2. How is the Compensation culture of ur organization?
3. Ur targeted workforce & their skills & education?
4. Recent culture of compensation?
5. Monitory & Non-monitory compensation practices?
11th October 2007 From India, Pune