Hi,
Can anyone advise me on how an HR should check whether the salaries being paid out to the employees are up to the market standards? What are the various ways of market correction analysis that an HR can do? This will help me understand whether the employees are underpaid or overpaid as per the market competitiveness.
Regards,
Menta
From India, Mumbai
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1Can anyone advise me on how an HR should check whether the salaries being paid out to the employees are up to the market standards? What are the various ways of market correction analysis that an HR can do? This will help me understand whether the employees are underpaid or overpaid as per the market competitiveness.
Regards,
Menta
From India, Mumbai
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Hi Menta,
It is very essential to conduct a market study. You can contact agencies that specialize in Compensation Surveys and Benchmarking to ensure that you are paying the right amount for the specific position. Some of the names that come to my mind are Mercer, Hewitt, Ma Foi, etc.
Please let me know if you have any further questions.
Regards,
Niki
From India, Pune
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It is very essential to conduct a market study. You can contact agencies that specialize in Compensation Surveys and Benchmarking to ensure that you are paying the right amount for the specific position. Some of the names that come to my mind are Mercer, Hewitt, Ma Foi, etc.
Please let me know if you have any further questions.
Regards,
Niki
From India, Pune
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Hi Menta,
Cost of getting the survey would vary and depend on the items included for the survey.
Some of the points to consider while benchmarking:
- Highlight the jobs that are of utmost importance in the company to get the survey. Do not include routine jobs.
- Have an appropriate mix of organizations to benchmark with.
- Highlight what you want to benchmark – salary, benefits, incentive structure, etc.
I would not have any information on the cost involved in conducting such a survey. You might have to speak to the firms listed in my previous reply to get an idea.
It is difficult to get data on the salary structure, gradation, % hike, etc., when an individual does this survey alone.
Yes, you can conduct a survey or obtain information on your own. But this would not be really accurate.
Regards,
Niki
From India, Pune
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Cost of getting the survey would vary and depend on the items included for the survey.
Some of the points to consider while benchmarking:
- Highlight the jobs that are of utmost importance in the company to get the survey. Do not include routine jobs.
- Have an appropriate mix of organizations to benchmark with.
- Highlight what you want to benchmark – salary, benefits, incentive structure, etc.
I would not have any information on the cost involved in conducting such a survey. You might have to speak to the firms listed in my previous reply to get an idea.
It is difficult to get data on the salary structure, gradation, % hike, etc., when an individual does this survey alone.
Yes, you can conduct a survey or obtain information on your own. But this would not be really accurate.
Regards,
Niki
From India, Pune
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Instead of hiring private agencies, which can be costly, my advice is for you to consider utilizing an MT/Summer Trainee. You can task them with conducting a comparative analysis of the salaries paid by other companies in your field. This approach is more cost-effective.
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My advice is that you must enroll your company for annual compensation benchmarking through various agencies/vendors like Mercer, Hewitt, etc. These agencies not only help you in mapping your existing structure with the industry but also assist you in placing them at a certain midpoint.
Thanks.
Best wishes,
Rajiv Naithani
Manager - People Development (HR)
GlobalLogic India Pvt. Ltd.
From India, Lucknow
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Thanks.
Best wishes,
Rajiv Naithani
Manager - People Development (HR)
GlobalLogic India Pvt. Ltd.
From India, Lucknow
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Hi Menta,
By simply searching the job sites/CVs, you can find relevant information. Identify an employee's position and experience in the same field, then cross-reference this data with the criteria on the job sites or the CVs you have collected. If you have access to job sites, input the same criteria to search for CVs and compare how much other companies are paying for similar positions.
Mani
From India, Thiruvananthapuram
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By simply searching the job sites/CVs, you can find relevant information. Identify an employee's position and experience in the same field, then cross-reference this data with the criteria on the job sites or the CVs you have collected. If you have access to job sites, input the same criteria to search for CVs and compare how much other companies are paying for similar positions.
Mani
From India, Thiruvananthapuram
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Hi Menta,
This is a simple format for comparing salaries with other companies. Firstly, you should benchmark your company against the best company in the same sector. Then, meet the most senior person in that company and try to convince them to conduct a market study for mutual benefit. It may not be easy, but there is no harm in trying.
Format for Salary Survey:
Salary Survey Report
Company Name & Address:
S. No Particulars Amount in Dhs Other Benefits Remarks
1 Starting Salary
2 Allowances (HRA/Conveyance/Food/Others)
3 Others
TOTAL SALARY (Dhs)
1. Incentives/Bonuses
2 Working Hours
3 Educational Requirements
4 Geographic Location
5 Source of Hire: (internal/external)
6 Working Conditions
7 Any Others
Note: Different levels of jobs can be included in the above survey.
Regards,
Sree
UAE
From United Arab Emirates, Abu Dhabi
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This is a simple format for comparing salaries with other companies. Firstly, you should benchmark your company against the best company in the same sector. Then, meet the most senior person in that company and try to convince them to conduct a market study for mutual benefit. It may not be easy, but there is no harm in trying.
Format for Salary Survey:
Salary Survey Report
Company Name & Address:
S. No Particulars Amount in Dhs Other Benefits Remarks
1 Starting Salary
2 Allowances (HRA/Conveyance/Food/Others)
3 Others
TOTAL SALARY (Dhs)
1. Incentives/Bonuses
2 Working Hours
3 Educational Requirements
4 Geographic Location
5 Source of Hire: (internal/external)
6 Working Conditions
7 Any Others
Note: Different levels of jobs can be included in the above survey.
Regards,
Sree
UAE
From United Arab Emirates, Abu Dhabi
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Dear friend,
Please work out your pay structure, the number of grades in your organization, and pay bands or ranges for each grade. Take a sample of representative jobs that represent the maximum number of jobs in your organization for job matching with other organizations. Select the number of organizations you believe are in your kind of business in the region. Prepare a data collection tool. I mean a questionnaire listing all basic salary and benefits compensation components that you believe are being practiced and leave some room for other unknown practices. Design the questionnaire with relevant questions, such as the percentage to basic salary with minimum and maximum limits for classified grades. Some components may be paid on a lump sum basis, and the amount not linked to the percentage of the basic salary should be properly placed with options like option i or option ii, etc. Request participant companies for their consent to participate, assuring them that results will be shared with all participant companies for the mutual benefit of all organizations, and the secrecy of important data will also be maintained.
Prepare an Excel spreadsheet for data input and calculations, then analyze and diagnose the data. Results and findings shall be checked with justifications. Recommendations shall then be worked out for items above or below the market rate. Calculate the cumulative financial impact as total compensation for each benchmarked job and arrive at final findings and recommendations.
I hope that the above broader guidelines will enable you to conduct a compensation survey with ease and improve confidence levels with a little homework. You may seek help from other lecturers or professors from statistics, mathematics, or IT backgrounds to design an e-questionnaire and analyze the data results in graphics.
Regards,
Sawant
From Saudi Arabia
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Please work out your pay structure, the number of grades in your organization, and pay bands or ranges for each grade. Take a sample of representative jobs that represent the maximum number of jobs in your organization for job matching with other organizations. Select the number of organizations you believe are in your kind of business in the region. Prepare a data collection tool. I mean a questionnaire listing all basic salary and benefits compensation components that you believe are being practiced and leave some room for other unknown practices. Design the questionnaire with relevant questions, such as the percentage to basic salary with minimum and maximum limits for classified grades. Some components may be paid on a lump sum basis, and the amount not linked to the percentage of the basic salary should be properly placed with options like option i or option ii, etc. Request participant companies for their consent to participate, assuring them that results will be shared with all participant companies for the mutual benefit of all organizations, and the secrecy of important data will also be maintained.
Prepare an Excel spreadsheet for data input and calculations, then analyze and diagnose the data. Results and findings shall be checked with justifications. Recommendations shall then be worked out for items above or below the market rate. Calculate the cumulative financial impact as total compensation for each benchmarked job and arrive at final findings and recommendations.
I hope that the above broader guidelines will enable you to conduct a compensation survey with ease and improve confidence levels with a little homework. You may seek help from other lecturers or professors from statistics, mathematics, or IT backgrounds to design an e-questionnaire and analyze the data results in graphics.
Regards,
Sawant
From Saudi Arabia
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