All companies and organizations have a duty to provide compensation packages that are in line with industry standards. They should not pay substantially less or more than other comparable businesses, and this is where the compensation survey comes in.
A compensation survey is a research tool that analyzes current industry standards in order to set up a robust and fair compensation strategy for an organization. This will determine the rate of pay for an employee’s job, and allows the employer to benchmark what they’re offering against the competition.
Although compensation information is often available via the Internet, through utilizing survey software, organizations are provided with timely, accurate information that helps both employer and employees make informed decisions.
It's true that some people may feel the benefits of a compensation survey are stacked in favor of the employer, however by rolling out a well-planned survey via online survey software, everyone involved can benefit.
What Do Employees Gain from a Compensation Survey?
A salary survey is a crucial tool that allows an employee to work out whether or not their pay is as good as it should be. This helps them to compare their income with similar businesses in their area and considers aspects such as:
- Salary increases
- Salary ranges
- Working conditions
- Work/life balance
- Hours expected to work
All of these facets reveal a great deal about a company, and can help employees make important, life-changing decisions as to where their professional future may lie. Will they continue in their current job and aim to climb the ladder, or set off for pastures new?
A good employee salary survey tool is vitally important to both employees and employers as it helps to identify areas of strength and weakness. An employee may gain from any of the following as a result of a survey being carried out:
- Pay increase based on their length of service. This is a particularly strong motivator in terms of employee retention.
- Pay that’s performance based. This motivates employees to perform far better though setting out agreed job goals and performance criteria.
- Pay for additional knowledge and skills. The concept behind this is to motivate employees to gain new skills and knowledge that helps them better perform their job role
Compensation surveys are a crucial tool for ensuring staff are well-motivated, and that new employees find jobs within an organization to be attractive. With this in mind, regular market analysis helps to greatly enhance employee confidence.