Comparing pay and benefits packages is almost a universal practice among employers, but why do they do it, what are they looking for and where do they get the information from?
The XpertHR survey of market pay comparisons [£] reports on how 145 organisations use market pay. Among the key findings are:
- Market comparisons are most likely to be used as a spot check on current salaries, and during the annual pay review process.
- Companies compare their reward packages with those of their competitors in order to get ahead on recruitment and retention.
- A benchmarking exercise typically draws data from five different information sources.
- Organisations often report problems matching their job roles to those in the survey data, but have a number of different ways to get around this.
Read all the findings, including details of the problems encountered and how organisations overcome these, in our survey report.
XpertHR has also recently reported on what is happening in the public-sector around market-facing pay. The Government believes that higher public-sector pay may be hampering private-sector companies' ability to recruit and retain staff in some regions. Evidence has been presented from trade union groups which suggest this is not the case.
See also XpertHR's Job Pricing service, which allows you to spot check salary rates and complete full-scale pay and benefit reviews at company level.