Understanding the Annual Salary Survey
An Annual Salary Survey refers to the yearly compensation and benefits study published by reputable HR consulting organizations like HayGroup, Hewitt, Towers Watson, and W. Mercer. A company can also conduct its own Salary Survey, but doing it annually may be costly and unnecessary.
Salary surveys show the current compensation and benefits practices in various industries and leading companies that participated in the said survey in a particular locality. The survey report is a critical reference material for benchmarking among business organizations that want to ensure their compensation and benefits practices are at par or competitive within their industry, market, and country.
Importance of Salary Surveys
Why are salary surveys important? Because in compensation, there are four basic principles that a company must follow: internal equity, external competitiveness, affordability, and sustainability. The second principle, external competitiveness, compels business organizations to regularly compare their salaries and benefits with those of the market or their competitors for talents. Hence, this matter is very important in reducing a company's turnover rate.
Regards,
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services