Answer in Management for Ali #159862
Why organizations use the Salary Surveys? Give Examples to elaborate your answer. (10 Marks- word limit 250 to 350)
Legal Compliance- Consistent participation in salary surveys helps ensure your company is in legal compliance and not at risk for price fixing.
Defensible Decision Making- Analyzing employee compensation and incentive plans is an ongoing process for HR. The consistent use of salary surveys helps formulate a company’s overall compensation strategy and forms a foundation for plans that are internally equitable and externally competitive.
Cost of labor requires reliable market data- The sooner the expense is managed through credible salary surveys and external market data, the more likely the business will develop the right total rewards programs and practices to support its short- and long-term growth.
Attain a market competitive program- A market competitive program can be attained over time with the support of quality external market data. A company that needs to closely manage revenue and costs also needs to closely manage its cost of labor.
The right compensation mix- A quality salary survey can support a business in establishing the right compensation mix for base pay and total compensation for each job, level, and function. A business can then make informed decisions based on market competitive base salaries and incentives of similar jobs within its industry.
A salary survey generally contains data about wages. Surveys may compare employee wages inter-departmentally, by company or organization, according to job title or position, or earnings for workers in different geographic regions. Put simply, salary survey results provide key insights into job roles and their salaries, helping employers determine and best create their own compensation strategy.