HR and rewards experts conduct benchmarking regularly to ensure that they remain competitive within their sector or industry.
In the current workplace, where retention of existing employees and attraction of new talent is key for business growth, it is vital that businesses understand how their rewards fair against their competitors.
Why conduct salary and benefits benchmarking?
- To remain competitive against your rivals / competing businesses
- To ensure that the company’s pay scales / banding, and salaries are aligned against the role and skills required using your job evaluation process
- To ensure equal pay, for fairness and to reduce the risk of a discrimination claim
- To understand whether your benefits packages are valued
- Give valuable data to business leaders
How to conduct benchmarking
Benchmarking requires a good selection of resources to ensure that there is sufficient data to report on the findings. These resources can include: salary surveys, statistics, job adverts.
Data used includes:
- Basic pay
- Bonus / commission
- Benefits including those that are enhanced e.g. employer pension contributions, enhanced family pay, company sick pay
- Flexible benefits including salary sacrifice schemes
- Other allowances e.g. shift pay, overtime, call out, uniform allowance
- Policies to support wellbeing, development and training, succession and promotion opportunities
In the current labour market where attraction and retention of key skills/people is vital for businesses, conducting a regular benchmarking exercise is important, to enable competitive salary and benefits.
For more information and to find out how we can help you conduct Salary and Benefits Benchmarking, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch, or alternatively email us at enquiries@nockoldshr.co.uk.