Managing compensation can be complex, especially when competing strongly for talent, while seeking to maintain an appropriate cost level.
It is key to know how competitive the salaries we are paying are and to have tools that allow us to manage them properly. To do this it is necessary to know the available sources of information, their advantages and disadvantages, their reliability and how to interpret the data to achieve efficient cost management.
Understanding what the competition is paying is critical, but surveys don't always make life easy: Should we consider statistics by company or by occupant? Target or actual bonuses? Is inflation considered with respect to different dates for incentive payments?
CompStrategy can help with:
- Salary benchmarking of your company's employees versus salaries of similar/comparable positions in the market
- Competitive Market selection, i.e., those companies that, because of their industry, size, geographical location or other factors, offer or could offer to hire our employees; and vice versa, those companies whose employee profiles are attractive for us to hire
- Identification of the information sources and surveys that best suit the desired objective according to their content, information quality and reliability, data collection methodology, presentation formats and ease of use.
- Analyzing the utility and how to take advantage of the available tools for statistical analysis, updating by market movement or cost of living, grouping, weighting and classification
- Designing the best procedures to manage the different components of the compensation (fixed salary, annual incentives, annual cash total, long-term incentives and valued benefits) to determine competitiveness
- Selecting the best form of communication of the levels of wage competitiveness found, both to management and the rest of the organization
- To identify contextual factors that could impact market values, such as hot skills (highly demanded skills in a certain situation), shortage of certain talents, others
- Analyze relevant intangibles that could affect pay competitiveness, such as flexible time, additional vacation, career possibilities, comfort and experience in the workplace, or other non-monetizable benefits
- Discuss how the identified competitive situation can be advantageous to your organization's business strategy.