Phil Woola SMP Uncategorized How Remuneration Benchmarking Helps You Avoid Price Manipulation

How Remuneration Benchmarking Helps You Avoid Price Manipulation

 

Market research firms and international business organisations that specialise in salary and workforce compensation packages will be the only providers of truly accurate remuneration benchmarking. These firms utilise industry and census information to create effective salary structures for all kinds of positions within an organisation and then calculate the most appropriate benchmarks based on these benchmarks to provide truly comparable data. They then apply their own individual remuneration data and benchmarking data to each job role to ensure that it is based on true market competitive total remuneration for each individual position. This ensures that whatever your needs and motivations for entering the workplace, you can be sure of getting an accurately fair and competitive remuneration package.

Why You Never See Remuneration Benchmarking That Actually Works

A large number of organisations calculate employee pay scales and structures based on the current remuneration package, which offers comparative data for similar or equivalent job roles in different organisations. However, many organisations also use a more generic form of remuneration called the performance payment, which offers no information on relative positions or performance between employees. Although this seems like an acceptable way to compare different employees, there are several important limitations.

One of the most common reasons why market surveys are not able to provide objective, comparable information is that they only represent a small proportion of total compensation costs for employees within an organisation. In order to provide objective information, any analysis of remuneration benchmarks must be restricted to those costs that are directly associated with the ability of the individual role to perform a specific task within the organisation. Many of the cost drivers of remuneration such as job design and development, work experience and production must be measured, aggregated and statistically analysed from the overall costs of the business as a whole. Individual job families are only relevant for providing a limited view of the profitability of individual jobs and should not be the basis for designing overall compensation package designs.

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