Employee compensation and pay administration is complex, especially when considering the competitive landscape for talent and determining the appropriate investment in staff. Hiring talent in any industry is competitive – the best talent is desired by your competition as well, consquently knowing what they may offer is excellent intelligence.
Understanding what the competition is paying is helpful, but having the ability to look at the return on your payroll investment can be even more critical to business success and investing appropriately in talent to a thriving company.
When reviewing competitive salary and benefits:
- Review industry peers, their size and location. The industry peers that are similar to your company will be most competitive, although it’s helpful to understand what the larger and boutique companies offer.
- Determine affordability for the talent. There may be compromises that you have to make dependent upon the competitive situation, and the availability of talent for the position.
- Remember, intangibles are essential. Money is important, but not all-important. More and more, employees are accepting less salary in favor of flex time or other non-salary benefits.
- Perform a compensation analysis with data to substantiate it so you know if you are competitive on salary and comp
To develop an appropriate pay solution for your business and culture, understanding the competitive landscape is the first step. You want to make sure that the fixed cost associated with your base pay makes sense. To do so, you must diagnose and design salary structures; validate that base pay relationship to market and evaluate relative job worth.
HR Knowledge can help you with all of the above, and also design variable cost pay programs for all levels of your organization that have a measurable ROI and get your employees focused on your key business drivers.
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