2016 pay decisions will be made against an uncertain outlook. The indicators are in flux:
- Hiring intentions are generally positive, although shaky and sector / industry specific
- Prediction of UK growth has been downgraded for 2015 and 2016. (2.4% and 2.6% respectively)
- 57% of companies say their main priority remains cost control
- There’s long been concern about UK productivity
All of which suggests that employers will continue to be cautious with pay awards. For most of us the 2% world seems to be here to stay.
Whether your philosophy is to spread the butter thinly for all or give jam to the few, it’s even more important to make informed decisions based upon defendable data. A salary benchmarking exercise provides:
- A snapshot of the market
- Data to build your budgets
- Insight for individual pay awards
- Clarity on those ‘hot jobs’
- Direction on how to make the most of limited funds
As with most things, quality outputs are based upon quality inputs:
- Choose a survey provider who uses robust job matching and statistical methodology
- Choose data sources aligned to your business and competition for talent (you may need more than one)
- Choose a survey that has a degree of consistency of participants, roles and reporting year on year
- Take time to accurately job match and involve line managers to ensure buy in
- Understand the survey’s data elements and participate fully
Salary benchmarking isn’t the end, it’s the means. It provides the foundations for informed decision-making when used in conjunction with: an understanding of your business and its environment; your strategic goals and their impact on workforce planning; financial constraints and your desired competitive positioning.
For many, the rigorous and statistical approach required for benchmarking is too time consuming or doesn’t play to their strengths. At Verditer, our salary benchmarking service provides a specialist to partner with through the process. We make it easy and simple for you by:
- Finding a data source. We are independent of any survey provider. This is a huge advantage for clients as we know the market and recommend the best surveys for your needs.
- Liaising with provider(s). We manage the providers on your behalf.
- Matching roles. We match your roles into the survey using the appropriate methodology and prepare any data submission required by the survey publishers.
- Analysing and reporting. We analyse the survey output into a benchmarking report that gives you market comparisons at an individual, department and company level. We can also provide cost analysis and a benefits review.
This leaves you to focus on the decision-making.
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