New to Compensation Benchmarking in HR: How Do I Tackle This Project by December 17th?

Dear All,

I am very new to this group and I am very happy to be a part of this forum. Currently, I am working as an HR Executive in a BPO setup, and my manager wants to revise our current salary. He has assigned me a "Compensation Benchmarking" project to keep ourselves competitive in terms of salary.

As I am very new to the corporate world, I am finding it pretty tough to do this. So, I request all of you to give me some input in completing this project before the 17th of December.

Please help me out.

Regards,
Madhu :roll:

Mandhu, greetings from Nairobi, Kenya.

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 labor market. Do you need to spend a lot 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 they want - they rarely complain about pay; they only move on!

Hi Madhu,

To start the work on a compensation survey, first and foremost, you should develop contacts with other HR members in your industry. Share your job profiles (level-wise) and median data with them, and ask for the same from their side. Compare the job profiles and salary data with your company's data. These are the steps that one should carry out before revising salaries.

Alternatively, you can hire a consultant and ask them to do this for your company.

Hi Madhu,

It's a very nice project you have. Before starting this project, you need to establish good contacts with other HR professionals in a similar industry. Secondly, as per your requirements, prepare a questionnaire and then start conducting surveys in similar industries.

When creating the questionnaire, please consider the following topics:
1. Why are you conducting this study - Objectives?
2. What is the Compensation culture of your organization?
3. Your targeted workforce, their skills, and education?
4. Recent trends in compensation culture?
5. Monetary and Non-monetary compensation practices, etc.

Study well.

Regards,
Sandeep