Salary Research: How to Increase Your Market

ayshakhatunasha

Of course, you know how much your employees are worth: you pay wages and determine the bonus package. But do you know how much your competitors are willing to pay for the same specialists if they want to hire them? Are your salary offers in line with the market? According to statistics, when setting remuneration indicators, businesses most often rely on their financial capabilities, without taking into account such a detail as "competitiveness of wages". And it is decisive for companies that want to be successful in business and attractive to talent. A study or monitoring of wages will help determine the company's position in the wage market for building a competitive policy .

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Salary research is a complex process of collecting, processing and analyzing data using mathematical calculation models. Depending on the request, the client receives a short, full or detailed version of the monitoring. The completeness of the research may be limited to a description of job responsibilities and the size of the monthly salary by position, or it may additionally include information on the supply and demand of labor, trends in wages, compensation and bonuses, the composition of the social package, in-demand qualifications and skills in a certain segment and for a specific time period.

Monitoring wages is mandatory for every organization whose approaches to employee remuneration include the principles of competitive wages.

Practical benefits of monitoring
Monitoring wages allows you to:

To understand whether the company's virtual phone number service wages are "in line with the market".
See how wages are formed in different business segments, similar companies or comparable regions.
To create salary ranges for personnel selection and for changing the remuneration of the company's employees.
See how similar companies structure jobs and optimize headcount.
Lost Profit
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Businesses that do not see the value in salary monitoring will face a number of serious risks and negative consequences:

Employee dissatisfaction. Inequitable pay will cause qualified employees to leave, as well as reduce motivation and productivity in the team. Companies that do not offer competitive wages risk losing key employees to competitors willing to pay fairly.
Problems with attracting personnel. Companies with salaries "out of the market" will face difficulties in hiring qualified employees.
Bad reputation. Rumors about unfair pay or employee turnover damage a company's image (brand) in the eyes of customers, investors, candidates, and the business community.
Economic losses. Ineffective salary management will lead to unjustified expenses on labor costs or, conversely, to the departure of valuable personnel due to low wages. This will reduce the company's financial performance, its profitability and will negatively affect the competitiveness of the business.
Sources for monitoring salaries
For over 10 years, our company has been collecting and analyzing information about the labor market on a daily basis. To conduct the research, the coverage of sources includes, but is not limited to:

Statistical information.
Research of the labor market in the area of ​​interest to the client in thematic communities, on recruiting sites.
Open reports of companies.
Own confidential information (business connections, own database of applicants and other sources that are not disclosed for the purpose of maintaining confidentiality).
Frequency of monitoring
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The labor market is subject to constant fluctuations, so it is effective to analyze wages dynamically based on updated data. This will allow you to track and promptly respond to changes in the external market. A common practice for monitoring is once every six months, but each company may have an individual approach to the frequency of this study.

Companies that quickly “integrate” into changes remain competitive. Salary market analysis is a tool for foresight and adaptation, making the right decisions to build a thriving business.

If you need to conduct monitoring quickly and efficiently, contact the analysts of the "Administrative Resource". Order the "Salary Research.