Employees are the greatest asset for any organization. Companies spend between 50 and 80 percent of their gross revenues on employees’ salaries and benefits. To attract and retain the top talents, organizations must use salary benchmarking as an essential tool. In this article at People Matters, Gaurav Chattur explains how salary benchmarking can pivot your talent strategy in 2021.
Why Must Companies Implement It?
The primary reason for implementing salary benchmarking is to retain talented employees. For example, if your company has a competitor or multiple competitors offering a better package, you may witness an increased attrition rate in your organization. It is here salary benchmarking plays a vital role. It is something that HR leaders across organizations must focus on getting right. Salary benchmarking can prove to be a great exercise to stay on top of the talent acquisition game. So, how does it benefit your organization?
Benefits of Salary Benchmarking
Remuneration for employees varies widely depending on the sector. Salary benchmarking allows organizations to get an idea of these differences and, at the same time, helps HR leaders identify pay levels typical in their industry. Furthermore, the benefits offered within the package can differ significantly depending on the employer. Salary benchmarking considers all aspects of remuneration to ensure that it accurately reflects the take-home packages. Additionally, external salary benchmarks can equip managers with insights needed to arrive at suitable salary hikes. This paves the way for transparent conversations during appraisal discussions. “By ensuring transparency and fairness through the whole remuneration system, HR leaders can interact more proactively and positively with their employees,” says Chattur.
Finally, salary benchmarking allows organizations to compare the salary figures between many other businesses within their industry. Overall, salary benchmarking gives an impartial and accurate idea of pay information to help enterprises make informed and effective remuneration decisions.
To read the original article, click on https://www.peoplematters.in/article/compensation-benefits/3-ways-in-which-salary-benchmarking-can-pivot-your-talent-strategy-in-2021-29257.