If you're trying to put your company in a competitive position to attract and retain valuable employees, a compensation consultant is a great place to start. You can work with a consultant to complete an industry-specific compensation survey. This survey will provide you with key information about the rates of pay and typical positions within your industry. Here are a few tips to help you evaluate that compensation survey to get the most benefit from the information it provides.
Assess The Competitor's Compensation
When you're looking to recruit and retain top talent, you need to be sure that you're paying a rate that's comparable to your top competitors. Part of a compensation consultant's survey will focus on those competitors to evaluate not only the salary range but also the benefits package value. This helps you ensure that you're offering something comparable, reducing the risk of employees being lured away by a competitor with a better benefits package.
Evaluate Job Descriptions
When you're comparing salaries, make sure that you're actually comparing similar jobs. Don't group those salaries by job title without actually ensuring that the descriptions fit the job duties of the people who hold those titles in your office. This may mean that you compare pay figures for people in roles with different titles to match up the job responsibilities.
Consider The Data As A Baseline
A compensation consultant will give you a clear snapshot of the current labor market, which is a good place for you to start with your company's salary evaluations. However, it's not designed to be all of the information. Your best plan of action is to use the reports as a baseline for developing a comprehensive strategic compensation plan. Create a compensation package for your entire company based on the prevailing trends that you see in the industry compensation plans. For example, if you see many of the competing companies offering fitness packages or reimbursement plans, incorporate things like this into your compensation packages to position your business as a contender in the industry.
Understanding your company's compensation packages and how they compare to the industry is a key part of positioning the business as a relevant competitor. With these tips, you can see why a compensation consultant's study is helpful. Talk with a local consultant like Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc. today to find out what you can about the current compensation trends, then work with your human resources professionals to respond accordingly.