What is Salary Benchmarking?

What is Salary Benchmarking?

May 15, 2017 Remuneration

In our last newsletter, we raised the question of “Are You Overpaying Your Employees?” (click here if you missed it). It was a great read about incentive programs, and how to reward your employees when they are on the higher end of their salary band. But what if you don’t know what a salary band is, or what the average salary should be for your employees. Maybe it’s time to start to think about salary benchmarking your team?

What is Salary Benchmarking?
Salary benchmarking is a process by which we assess your internal job descriptions and match them to roles described within established salary surveys. As a part of the matching process, we also take into account your industry, location and other factors that can affect a salary. From here we can provide you with not only the breakdown of what your industry is currently paying for different positions (salary bands), we can also let you know how your employees and their current salary fits into these ranges.

Why Should We Be Completing Salary Benchmarking?
There are a whole range of reasons why you might want to look at participating in salary benchmarking:
1. You have a new role within the business and you are not sure what the current, competitive salary levels are in the job market
2. You would like to check that you are not over or under-paying your employees.
3. You would like to attract high quality talent and offer salaries to attract said talent.
4. You have experienced an increased level of staff turnover and salary has been flagged as an issue.

Overall, participating in salary benchmarking for your organisation helps to give you an accurate reflection of your current remuneration levels, and allow you to make informed and effective future decisions around remuneration. The best part? Salary benchmarking may also help reduce employee costs!

TalentCode HR are the experts in Incentive and Remuneration change management, so why not call us today on 1300 559 585 to see how we can help you start to lower your employee cost, whilst maintaining your high performance!

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