This article is written to explain and provide you with an introduction to the Salary Survey Benchmarking Form.
In part 1 of this series, we introduced to you the leading Approval to Hire (ATH) Process, which is overseen by HR, and explained that there are 3 forms which can be used for your business. We mentioned that each form has its own complexities regarding formatting features. Thus far we have discussed Candidate Total Rewards and Internal Benchmarking, now we will discuss Salary Survey Benchmarking.
The Salary Survey Benchmarking ATH Form is similar to the Internal Benchmarking ATH Form, however, instead of only benchmarking candidates to the current employees, you are conducting a complex analysis on the candidate’s proposed Total Rewards against your current employees’ and other companies within the industry or market using data collected from Salary Benchmarking Companies such as Mercer, Wynford Group, and Economic Research Institute.
There are numerous ways that you can collect salary information for free, however, how can you be sure that the information you are gathering is accurate or “industry standard”? As companies grow and undergo change, challenges are faced to keep up with the constantly shifting marketplace around them. Businesses who adapt quicker typically see more success.
The benchmarking companies listed above are considered to be the “Best in Class” in the products and services they provide to copious businesses across Canada, North America, and/or even Globally. Generally speaking, companies invest upwards to $10,000 annually to subscribe to their services and products. Such investments have a high ROI, as less time is spent researching industry standards, best practices, or how your competitors compensate their employees or developed their Total Rewards programs.
These companies specialize with a team of experts to study the market and gather real-time current data from various companies who are participants, who reveal all types of business trends and insights which any organization needs to remain competitive and benchmark against their industry peers or competitors.
Salary benchmarking is one of the most comprehensive ways to remain competitive and on top of ongoing business trends, it is the process of evaluating, checking, or comparing your business against a predefined comparative standard or point of refence.
Many companies across Canada, even globally, invest in this membership and use this strategic salary or total rewards benchmarking service to gauge the attractiveness of their internal job positions by comparing them to those in the same positions of their competitors and similar companies, industries, and markets.
Approval to Hire Form
The form itself has the same look and feel as Internal Benchmarking. The major difference is what data you are comparing your candidate’s compensation package to and the graphs.
As you can see on the above snapshot, the candidate’s benchmark match is position 000.111.222. When this information is auto-populated based on your benchmarking process, it then auto-populates the salary survey’s data from a different tab within the workbook to compare it to what your proposed compensation package is for the candidate. As a general rule in salary benchmarking, you want the compa ratio to be as close as possible to 1.0, this means that the candidate’s proposed compensation package is aligned with your competitors.
The graph here provides a high-level summary of where the candidate’s proposed compensation (Company Data) is compared to the markets benchmark data. The second graph remains the same as the Internal Benchmarking graph you are used to seeing, because you still want to ensure that there is equity to the candidate’s proposed compensation package to the current employees in the same position or level.
Due to the complexity of developing this form to meet the needs of individual businesses, which is also determined by which Salary Benchmarking company is used, there will be no downloadable form available. However, please reach out to a BIG Representative to discuss your options and to develop a workbook for your company!
This brings us to the end of the Approval to Hire series. Now that you understand the full process, what it includes, and have descriptors to the forms, it is time for you to decide which form(s) will work best for your company.
If you are interested in Salary Survey Benchmarking and would like to know more, or you have already purchased a membership to these preferred vendors or others and would like to have a comprehensive workbook created for your company, please contact a BIG representative for support!
Download this resource Approval to Hire: Part 4 – Salary Survey Benchmarking.