What are the benefits of completing Salary Benchmarking for your organisation?
Salary Benchmarking is a critical exercise for a company to undertake if they want to attract and retain the best talent. The benchmarking exercise will identify the market rate within your business sector, location and experience level, this will indicate how close to the market rate you are paying or will pay moving forward.
At SimpleHR, we would recommend that as part of your annual HR audit you complete a benchmarking exercise to ensure your benefits packages are in line with market rate. On other occasions it is conducted on an ad-hoc basis as a result of a restructure, creation or replacement of roles or sometimes due to employee relations issues arising from equality pay dispute.
Simple HR can provide you with a benchmarking system that enables you to confidently understand your pay scale and reward employees according to their contribution to the organisation keeping everything fair within the workplace.
A thorough salary benchmarking exercise will consist of completing job evaluations using traditional metrics, including; span of control; budgetary responsibility; requirements for specialist knowledge, qualifications and experience.
It should also be specific to your industry, the structure of your organisation and it’s culture. Done correctly this will ensure a fair pay system across all departments and will encourage transparency in the work place thus leading to employees feeling better valued.
Ensuring your employees’ salaries are in line with the market rate will improve retention and during the recruitment process will make your vacancy more attractive to potential employees.
If you would like more information about benchmarking or would some advice on completing benchmarking in your organisation then please don’t hesitate to get in touch