The corporate
world is highly competitive. Each company is striving to get the best people on
board and at the same time get them away from the clutches of their rivals. How
exactly can a business lure a much sought-after talent to join its team?
The most
obvious answer to the above question is to offer a very attractive package. The
best companies are willing to invest in great employees. Of course, they have
to make sure that their offer is feasible. They can’t just quote a rate without
knowing if it fits in the company budget, if it can be covered by the income,
or if it is justified by how much the hiree can contribute to the growth and
development of the business.
Besides
these, any company wouldn’t want to make the mistake of offering what would
turn out to be an outrageous amount. If you’re an employer, you want your offer
to be competitive but reasonable. How do you figure out just what that right
figure is? This is where pay
benchmarking comes in.
Benchmarking
for salary is an important strategy that involves analyses of internal job
descriptions to be in accordance with prevailing salary survey jobs to figure
out what the current market rate is for each position. There are different
salary surveys for all levels. If you have an opening in the executive level,
you can refer to the results of an executive pay survey to have a good idea of what to offer and
what your ceiling would be.
Such surveys
offer a slew of useful data. Besides salaries, a specialist survey, for instance, will detail
roles, job descriptions as well as other rewards. Access to such helpful
information allows you to not only stay within the market rate and gauge how
high you can offer without risking the company budget, but to flesh out
concrete expectations regarding the position as well.
Salary
benchmarking provides other benefits besides. Employers
will find out how well their compensation packages hold up against those of the
competition and know if it’s time to make adjustments. This is crucial for
keeping current staff happy. The process also gives them inspiration and ideas
for improving their enjoyment scheme.
It’s a
cutthroat world out there. Pirating employees is a common practice. Possible
recruits will have no qualms pitting interested employers against each other
for their own gain. If you’re confident about your offer, it would be hard to
manipulate you and you’ll come out on top whether you get the talent or not.
Do you have have any questions or suggestions? Write in comment section.
Post a Comment