Compensation Benchmarking & Analysis
Does your company pay competitively? If your response is “I have no idea” – that’s not good. We equip you to have a data driven response based on the facts.
Does your company compensate your employees competitively? When HR Catalyst thinks of compensation, we think holistically; base pay, potential bonus pay, vacation or PTO, and healthcare benefits. These are key components of an employee’s overall compensation and are all important in attracting and retaining the right talent. To start with, it is important to have accurate job descriptions and know the average market pay in your geographical area for each position in your company. Total compensation can be a major factor in employee engagement, having a great culture and retaining the right talent. Remember, people are your greatest asset – rather than seeing the compensation of your employees as a major expense, think of it as an investment. We can equip you with the accurate information for your business to create a compensation strategy to use all your compensation dollars wisely.
Why is Compensation Benchmarking & Analysis so important?
Competitive pay is important to attract and retain top employees. When the economy is good and employment is low it is important to pay competitive salaries to attract the top talent you are looking for. You also need to pay well to retain your top employees because they are being courted by your competitors. Turnover and hiring new employees are time consuming and costly so it is best to retain employees.
In many cases companies are underpaying their employees. In a few cases though, we find clients are actually overpaying their current employees because they don’t know what competitive pay looks like. That’s as bad as underpaying them. In either scenario, we can assist you.
Benefits of Compensation & Benefits Analysis:
- Conduct job analysis to create detailed job descriptions
- Analyze competitiveness of your current employee salary and benefits programs
- Design a compensation structure based on current industry data
- Create merit and performance based compensation plans that align with your company’s financial goals
- Develop incentive and bonus plans that align with your business and its culture
- Differentiate pay for lower, middle and top performing employees
- Create recognition and reward programs
- Work with benefits consultants to create innovative and cost effective benefits programs
- Provide a total compensation statement for your employees
Our Approach to Compensation Benchmarking & Analysis
We build detailed pay analysis studies that are industry, geography, and company size specific. Once we crunch the numbers, we then collaborate with leaders to understand the data and determine how to react to it within their organizations.
We can also create and implement pay grades and structures that are based off benchmark data that is created. The pay grades or bands can then be used by leaders to make informed pay decisions with their employees vs. doing this in the dark with no more information than gut feel, which is not a good strategy when it comes to your employee’s pay. Another benefit to having pay grades implemented within your company is that when you do salary increases or promotions, you are doing that consistently and with a sound methodology. This is a huge help to your budgeting process, and growth plans if you are adding employees to your company.
Whatever the case, having a sound compensation plan, structure and strategy will pay off significantly for your organization today and into the future.
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