Take a close look at your job descriptions, goals and talent needs.
When the economy rebounds, some forecasters believe that businesses will again be faced with talent shortages. And when this economy rebounds, many talented workers may be on the look-out for employers who can catch them up on their salary expectations.
Employers can expect fierce competition, especially in those fields requiring highly skilled workers. Without talent, companies will be unable to compete. For these reasons, information gathered through salary surveys can be very useful.
As explained in a previous HRTools.com Insight, salary surveys can help employers accomplish a number of objectives: from evaluating a current position’s pay competitiveness (for instance, if someone believes they’re being underpaid), to the development of an entire compensation structure for the company.
As companies position themselves for a rebound, employers will want to consider the following steps in order to maximize the benefits of using salary survey data:
- Develop job descriptions for all positions. Well-written and accurate job descriptions serve employers in very important ways. Most importantly, they provide employees with a clear definition of what is required of them to succeed in their positions. A well-written job description identifies the essential duties of the position, as well as the knowledge, skills and abilities required to successfully perform the job. Using job descriptions in your process helps identify and match those essential factors to survey benchmarks.
- Determine how the salary survey information will be used. You will want to ask yourself questions such as:
- What is my goal for having this information?
- What are we going to do with the information when we get it?
- What are our resources?
- What is our timeline?
- What is our budget?
It is important to think about these questions because the answers will impact future decisions.
- Decide how you are going to find this salary data. There are several sources to choose from, ranging from your traditional published salary surveys to those found on the Internet. Published surveys are useful for most organizations. These surveys are conducted by large compensation service groups such as Watson Wyatt Worldwide. Many of these companies have been gathering salary data for a number of years, so they have comprehensive reference points and solid information.
Almost everyone appreciates how the Internet saves time, and salary surveys found on the Internet are both timely and time-saving. These online sources are usually very current and they update frequently through e-mail or Internet links. Within a matter of seconds, you can browse online and access a number of sources.
Another source would include those vendors specializing in customized surveys, which can be tailored and conducted specifically for your company. These services are more time-consuming and relatively more expensive.
- Select the geographic area for which you will gather salary data. Normally, you will want to reference the area that reflects your recruiting area. Most companies want information for the current labor market. So you will think about answering questions such as these:
- Where do my new hires come from?
- Where do employees go when they leave?
- What recruiting area does that incorporate?
So for instance, if you have a clerical position or a manual labor position, you will normally search within your local commuting area. On the other hand, if you have an executive position, or one requiring highly skilled individuals, your search will probably include a broader area. You may need to look regionally, nationally, and perhaps, internationally.
As a final thought, employers should use salary survey information as a tool or an aid. Not all businesses are the same and not all business goals are the same. Evaluate your goals, and keep them clearly in sight when using this data as part of your workforce planning strategy.