Pay Benchmarking
We can help with pay benchmarking and job evaluation so you can ensure consistency in similar job roles and stay ahead of the competition
The benefits of pay benchmarking and job evaluation
Pay benchmarking and job evaluation allow organisations to stay ahead of the competition and ensure consistency in similar job roles.
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Aligning with the market: Knowing where your salaries sit within market standards is crucial. This knowledge helps you make the most of your budget while remaining competitive within your industry and geography.
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Boosting employee retention: Benchmarking helps make clear if an employee’s salary is fair, and allows you to do something about it if not.
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Promoting internal equity: Pay benchmarking isn’t just crucial for external candidates. It also helps ensure internal equity by confirming if employees in similar roles are being paid the same.
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Attracting top talent: If your total compensation packages are competitive for your industry, the chances of attracting top talent are far higher. Most candidates are applying for multiple roles, and salary is a key consideration.
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Engagement and motivation: Having a transparent compensation philosophy (that includes benchmarking) demonstrates to your employees that their salaries are fair, but also carefully considered. This can help boost trust which in turn, can enhance engagement and motivation.
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Ensuring legal compliance: Regulations require companies over a certain size to publish salary information. Benchmarking is a key part of a transparent compensation policy that complies with such requirements.
Making decisions about compensation strategies, performance reviews, pay budgets, and the positioning of your organisation within the market is made much easier when you have access to good quality pay data.
The first time you complete a pay benchmarking exercise you will need to decide on your market positioning, and where your salaries should fall along this scale. This will be informed, in part, by your company’s location, size, and industry.
Benchmarking can help you uncover what your competitor's salaries look like, then you can decide where to position yours in comparison.
But where to you get that data from?
Sixty percent of employees say they would change jobs if it meant working for a company with a transparent pay structure. Some employees may perform exceptionally well and never ask for a pay increase, while others may not perform as well but because they asked for a raise, they end up on a higher salary.
Evaluating roles and benchmarking pay helps avoid this situation, which in turn can boost staff satisfaction and retention. Pay benchmarking also helps address any pay gaps due to demographics like gender and ethnicity. Using pay benchmarking as part of a fully transparent compensation policy helps to improve equal pay.
Pay benchmarking might seem like a complex process, but it doesn’t have to be.
Ready to start your pay benchmarking or job evaluation journey? Get in touch to find out how Robinson Grace HR Consultancy can support your pay review process.
