Hi
Compensation surveys are conducted for benchmarking the salary levels of the organization in the industry. Points to note while conducting the surveys
Creating a compensation philosophy
> where does the organization position itself in the industry ( eg: 70th percentile of the market) this means the salary levels for the organization will fall under the 70th percentile of the market salary
Benchmarking
COnducting a benchmarking with industry will not be an appropriate options where there is much if diversty. Proper measures needs to be ensured while plannign the benchamrking exercise
> identifying the peer in the industry
> organizational to whom we loose the people to
benchmarking should be done with followinf points in mind(not exhausitve)
# industry
# nature of business (product/service etc)
# headcount
# volume of business
# operating geographies
# skill sets and special competencies
It is unfair for a 100 people product developmetn organization to benchmark itself with Infosys. This will yiled no desired results. We might end up understanding the market price - but the affordability issue creeps in, which does require consideration while designing the salary structure
Measuring parameters
# guarenteed cash components(basic,HRA, allowances n cash etc)
# fixed pay
# variable pay
# benefits (detail - insurance, hard furnishings, loans, education etc)
This needs to be carried out for all roles/levels corresponding to the market strutcture
Comparitive Analysis
# minimum salary offered for roles/levels
# median salary
# Maximum salary
Market percentiles at varied levels - 60,70,80 etc
compare your organization salary level at 70th percentie(as per our eg) and make appropriate changes in salary structure
It is very difficult to obtain salary details for all companies planned to be benchmarked against. Hence better option would be to use a third party such as Hewitt, Mercer, Mafoi etc for the data captruing an analysis
The authenticity of data is always questionable since organizations may not be revealing accurate data most often. But a fair comparison can be done
All the best
Regards
Rajesh Balasubramanian
Head - Operations
TiG Global
Bangalore
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