Paying employees a fair compensation level is vital for the competitive success of every business, whether that business is a regional bank, website design company, or local law firm. Savvy business leaders and human resources professionals make smart decisions about employee salary levels by staying current about what's competitive in terms of compensation in their industry, region, and position. They do this through the use of a salary survey.
A salary survey is a survey tool designed to collect data on the average salaries paid to employees in a given region, industry, and usually position. A salary survey is similar to a compensation survey as both of them collect data on wages. However, a compensation survey goes above and beyond salary data to include benefits information. Both, though, can be constructed using online survey software.
Companies must adhere to a fine line when it comes to setting fair compensation levels. Sure, if employees salaries are high vis-a-vis industry, position, or region norm, then employee turnover will likely be low as employee realize that he grass isn't greener on the other side of the fence. However, if a company overpays in the salary department, its profitability, and possibly its competitiveness suffers.
Conversely, underpaying employees may even cause a bigger problem. When employees find out they are being underpaid (and they will find out), they may decide to look for another job with another company that pays higher wages.
Therefore, it is in the best interest for companies to invest in a salary survey tool using survey software to obtain true market data when it comes to setting pay scale levels for employees.
Taking the salary survey one step further: this survey tool helps organizations to develop and implement benchmarks and strategies for compensation increases. It helps companies set salary ranges, including the starting salary, midpoint, and other important quartiles.
Not only do salary surveys ensure a company is paying its employees fairly according to the industry and region marketplace, but they also ensure that employees are being paid equitably throughout the internal doors of the company. While taking into account education and experience, a salary survey can be useful in determining performance increases and bonuses over and above cost of living adjustments. It is for this reason that this type of a survey tool should be conducted at least every few years. With the use of online survey software, it is easy to keep on top of fair salary levels that mesh with the industry.
Businesses today operate in an extremely competitive environment. They have to compete on a number of fronts, including world-class customer service and a stellar product line. But they also need to attract and retain top talent and skilled professionals to run a successful enterprise and keep it operating in the black.
A fair salary is one of the best ways to attract and retain top performers, while providing the motivation employees need to give their best each and every day. Conducting a salary survey through online survey software is a great means to that end.