You know for a fact that employees are the most valuable asset of a foundation who help to keep the operations running and take the company even further. The quality of the workforce of an organization has a direct impact on the products and services of the company. So, it is highly important to attract the best talent in the company for the betterment of the foundation.
There is a saying, “Money Talks” and when it comes to the employees of a workplace, it is highly true. You would be required to offer more competitive salaries which can help you stay ahead in the game. You can set a competitive salary through the process of Salary Benchmarking. Let's take a better look at the process.
What is Salary Benchmarking?
It is a process that involves matching or exceeding the ‘benchmark’ salary that is set across the industry for a particular designation. You would need to keep an eye on the salary slabs offered by your competitors in the field. Once you have an idea of the average salary; you would need to match with your competitors or offer a little more to attract the best and most talented employees for the task.
The Process of Salary Benchmarking
1. Pre-implementation Analysis - Think as a job seeker rather than a recruiter. A talented employee would know where to deploy the skills and so instead of considering a basic job role, think of the skills required for the role and break them down into smaller responsibilities. This will offer you a more realistic view of the salary that you can set logically.
2. Set up Data Sources - You have to make sure the data sources are relevant to your niche and industry as the same job role can look for different skills when the industry changes. Another factor is the geographical location so compare only with the companies in your region.
3. Targets and Goals - Salary Benchmarking is a strategic move and it should always abide by your business goals and targets. If it does not align with the overall brand strategy, you would be drifted.
4. Range of Salary and Additional Benefits - This is the stage where you need to work on budgeting by determining the salary range and other additional benefits. Run benchmark figures against your payroll budget to develop a salary range.
5. Review and Adjust Salaries - Benchmarks are subject to change frequently and it is an ideal situation where you can anticipate the changes beforehand. Based on the marketing situation, the offered salary can evolve with time and so, it should be reviewed and adjusted regularly.
The Benefits of Salary Benchmarking
1. Attract Quality Employees - You get what you pay for and salary benchmarking is the best way to get talented employees in the field. It does not attract them but also puts you in a good position to negotiate.
2. Retain the Best Talents - Retaining employees can be a daunting task but with benchmarking it is quite easy to deal with the situation.
3. Good Employer Branding - Your reputation as an employer is crucial for recruiting, Benchmarking creates good employer branding while instilling a positive work environment in the company.
Conclusion
Salary benchmarking is one of the most effective ways of attracting, retaining, and employing that worked for many companies in 2023 across the world. So, create a strategy and embark on your journey to churn out the best out of the best.
