Compensation Benchmarking [Thread 20379] - CiteHR
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Hi Team,
I am working as Sr. HR Manager in a Medium Size Software Company. We want to Benchmark our compensation with at least 10 other software companies in India.
Can you suggest the process also How do I do the same. I have to submit the report to my Head office in a week’s time.
Looking forward to help from HR fraternity

Hi Srividya,
Regarding the Compensation survey, the following points are most important
1. Look for competitors in the market who are in the same level as your company ( approx staff size, Projects, Market standards) etc.
2. Competeiors should be from the same city.
3. Develop result oriented Survey questionnaire
4. Look for colleges offering professional course (MBA, BBM, BBA) and provide them the Salary survey project and target Companies.
It would be a benefit for the students as they will have live experience in salary survey which is very important in the HR stream.
All the above needs to be planned well in advance and the same procedure can be followed every year.
The result of the survey would be 75-80% accurate.
This is one of the best methods but tedious and time consuming too.

hi srividya,
it would be very important for you to first identify the positions you want to conduct the survey. because the designations are a bit dicy and can give you a very wrong information and may not be able to fill the gap of the level of resposnibilities assigned.
next step would be identify the companies you are loosing your employees and companies which are in similar product and processes and ofcourse your market competitors ......
All this information shall give you a logical base and a process of accuracy to your survey.
The next step would be pretty simple as you need to only compare the positions and their compensation with each other to derive an ideal package for the positions you primarily identified.
Thanks and Regards,

Hi :
Following are some of my suggestions :
- identify similar organisation existing in your city.
- check and compare with their salary structure with respect to specific grades and how the fitmentation part is done in their industry. Generally other company HR cannot give this info. Some Top officials in your industry or HR Head needs to tackle this. Survey for atleast 3 - 4 companies.
- Like this you need to do for the 'N' number of positions you need to compare with your salary standards. If it is a deviation about 5 % I think you not to worry about. Anything above 10 % then a focus required on this.
- While doing the Survey one has to prepare a set of questionnaire and this needs to be circulated to the other companies and do the analysis.
- Also one has to focus on their attrition analysis and then only take a final call on this.
With regards,
Srinivasa Rao G

well compensation process require identifying the business partner ( Salary Surveyor)who will guide you how to go about it.

Once you identify the Business partner , you need to identify the peer cut.
what is peer cut?
Peer Cut is consortium of companies with whom you want to benchmark your salary.

There are 4 option to choose from

1) Identify the companies having similar business or products.
2) Identify the companies from where you loose your talent and you hire your talent (Most Common Practice)
3) Identify the companies having similar Revenue and employee size in same group of business
4) Identify the companies where you want to be in next one year or so..

ideally companies choose 2 point but every company has different philosophy of compensation.

Once you are done with Peer cut, you need to work on the Job Codes and Job Description.

I Must tell you that Entire Compensation Process is based on Peer Cut,Job Codes and Job Description, if you fail to identify correct peer group or job codes or jds, your process get failed.

Once you are done with placing employees on job codes according to job description then you are ready to benchmark the salary with peer cut.

now you can find out the Market Gap on different percentiles.
Ask your company management, where they want to place their employees.
here you can link the merit increase based on the performance of the employees.

you can make Matrix for merit increase for every grade.

let me know if anyone has any question, this process is ideal for IT Companies.


Hi all,
i have joined this site recently and i'm working in a Singapore based MNC - Invida India Pvt Ltd as a HR executive - OD and is assigned with a task of salary bench marking, we are a mid size company consisting of 850 employees across India
kindly advice me how do i conduct this survey and what should be the contents of the Questionnaire

Hello All,
I am looking for some help and leads for my job search in India. I have recently relocated to India from the UK and US and hence looking for suitable HR opportunities.
In my most recent role I was working with Barclays in London as an Compensation Manager. Prior to Barclays I have worked in New York as a compensation consultant with Kenneth Cole Productions, Morgan Stanley and Aon-Hewitt Consulting. I have also worked as a compensation analyst within the Total Rewards group at Deloitte Consulting. I graduated with a Masters in Industrial Relations and Human Resources from Pennsylvania State University and degrees in Computer Science and Personnel Management from India
It would be great if you could contact me for any open opportunities matching my profile or send my profile across to someone who might be interested.
Many Thanks

Dear Seniors, can you please tell me what is peer cut. Rgds Sweta
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