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Five reasons to conduct a compensation survey

Posted on 5/12/2021 by Elizabeth in category: survey software articles
The most valuable resource for many companies is its employees. They are often your greatest asset, and can have a tremendous impact on the overall success of your business. They can fuel growth, give you a competitive advantage, and make your company’s customer service and reputation stellar. That’s why employing a well-designed and cleverly executed compensation survey is a vital tool in your business compensation and employee attractive and retention strategy.

Here are five reasons to implement your own company’s compensation survey.

1) Recruiting Top-Tier Talent

Today’s job market is more competitive than ever, and compensation is a major player in attracting the best and brightest of employees. Choosing a proper pay scale that is aligned, or better than, your competition gives you an edge to convince the desired employee to join your force. A compensation survey can provide you with salary comparisons across job positions, so you can create the appropriate pay grades, ranges and scales.

2) Retaining Top-Tier Talent

Once you have secured top talent to your organization, you obviously want to keep them there. In order to do so, you need to keep a handle on the compensation market vis-a-vis job positions. A compensation survey isn’t a “do one and done” strategy. You’ll want to conduct it periodically, especially in times of a volatile job market. Employees expect to be paid the prevailing market salary rate, and you fail to do so they may very well jump ship.

3) Avoiding Wage Fixing

It’s against federal law for employers to fix wages and agree to not hire each others worker’s to keep wages low. A compensation salary provides you with credible market data on salaries to justify the compensation you offer to potential employees and pay to current employees.

4) Creating a Budget

Obtaining benchmark compensation data is helpful to not only know the appropriate ranges for similar positions in your industry, but having salary survey software data on hand can assist you in creating a well-supported budget that also allows for adjustments throughout the year.

5) Improving Employee Morale

When you conduct a compensation survey, inform your employees of the results, and adjust salaries according, you show your employees that you care about their financial wellbeing. All things considered, happier employees are more productive, which benefits you in the long-term/

The bottom line is this: Conducting a well-designed compensation survey using online survey software is essential to your company's employee recruitment and retention strategy. When analyzed and results implemented, a compensation survey tool ensures you're offering your workers a fair salary and benefits package. It also helps you to avoid making salary mistakes, particularly underpaying employees. Just remember to complement your salary survey with a benefits survey, so you can provide your current and prospective employees with the best HR package to keep them happily onboard.

Now is a great time to conduct a compensation survey and using online survey software makes it a lot easier.
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