Challenges of using Compensation/ Salary Surveys:

There some challenges associated with salary survey like:

1. The time and money needed to create one: this is especially challenging if your
organization is conducting a third-party. Custom Survey ride job roles.
2. Employs Concerns: Direct wage information is sensitive data that no
organization wants its competitors to have, and may violate anti-trust laws.
3. Legality Concerns: Revealing or barely concerning survey participants'
individual data is actually against the Department of Justice's surveys Anti-Trust
Guidelines. Reputable that follow the necessary legal guidelines concerns. Can
alleviate participants In this regard. Options include Collecting buying survey
reports from well-known companies that specialize in collecting and reporting data
for this sector, or hiring third party to conduct a salary a Survey for your niche
sector.
4. The use of bad market salary data: Bad data will likely lead to skewed
compensation results. As a result, you'll find it band to attract viable job prospects
and will risk looking foolish by advertising a salary range that is not in line with
industry norms.
5. Risks of turnover. It's not good if a salary benchmarking mistake is discovered
after on employee is hired, or if there is "any adjustment (especially a downward
adjustment to salary without fair compensation, your team might experience
dissatisfaction, poor engagement, and increased turnover
How salary survey data can improve Compensation Strategy?
Following are ways that can use survey data to level up compensation strategy:
Write or update job descriptions:
Whether your recruiting new talent or clarifying expectation for individuals who are
already employed in a certain role salary data can inform what responsibilities and
experience are linked to certain level of compensation, empowering to write job
descriptions that are after the accurate, before, during and hiring process.
1. Secure buy in from leadership on changes to your compensation strategy Much
like your employees, your organization's leaders need to know the"Why""
behind compensation strategy updates can back the evidence and adjustments?
Survey data your that decisions and provide. Your organization's leadership
needs to sign off on changes.
2. Determine how to strengthen your compensation strategy with total rewards:
You may discover that white your organization isn't in a position to pay the most
competitive cash salary, you can fill out your compensation packages with a
more holistic total rewards approach that includes indirect forms of
compensation such as traditional benefits, an employee recognition program,
and special perks.
 3. Adjust compensation during performance review season: By frequent
reviewing Salary data, you can know the most competitive and fair
compensation adjustment to make during performance reviews And your be
more prepared to tie Those changes closely to performance.
Choosing Salary Surveys:
Salary surveys Cue the heart of healthy compensation structure -program and
knowing. How to salary survey is key. Hele to consider survey. When choosing
salary a salary survey.
1. Validate the Methodology. At some point your business partners are going to
question the underlying data behind a salary survey. Understanding the mothe
decay Wohnd a salary survey behind your confidence in the will ensure which
will translate to business partners that are more confident as well Choosing a
salary survey that and sound methodology and audit process should be critical
consideration.
2. Participants. Salary surveys represent a sample of the labor market, and no
compensation surveys will contain identical participant. Even in many of most
popular and trusted surveys. When considering Salary survey for purchase, an
always ask the survey provides for list of participants. Using the participant,
some items to confirm are!
 The participants are relevant to your organization.
 A healthy number of participants. Within the data set.
 Survey participants consist of Companies you compete for with. that talent
3. Jobs included. Without question, having survey jobs that align to your
organization is critical. If your organization is growing, knowing what jobs
might be added to your internal list job advantageous. Most salary will publish
a list their surveys job that will survey jobs that review prior to participant or
purchase. Where possible, review a sample job description to ensure the
language finds a balance between being bored enough to cover, many
organizations, yet specific enough to meet your needs.
4. Does the job leveling Align to Your other Survey. An often overlooked
consideration for salary surveys the leveling aligns to you Surveys.is how the
leveling aligns to you other salary survey. Job level is an important consideration
especially if your organization creates market composites with multiple salary
creating hybrid market composites is easier when your salary survey all use the
same number of job level.
5. Industry. Industry specific data is valuable resource to ensure competitive pay
and stay aware of industry hands. This data may also result in better buy- form
from your stakeholders. In generally, industry specific salary survey will have
fewer responses, as compared to general industry surveys so it is important to be
 mindful of the number of participants. Unless is your organization facing still
competition from companies in the same industry great compliment General
Industry survey.
6. Employer Reported vs. Crowed Sourced:
Crowed sourced data are not surveys that can be validated, despite the best
efforts and marketing campaigns. Often times, crowed sourced is considerably
different than the employer reported. Salary survey data, which has been
rigorously screened and reviewed for accuracy. Day be Crowed Sourced data
may one liable, but until then, most compensation experts do not trust it, for.
7. Safe Harbor: In 1996, the Department of Justice and the Federal Trade
Commission. Established Safe Harbor and antitrust guidelines. The guidelines
specify the followings:
 A third party should conduct a managed the salary survey.
 Data supplied by participants. Be older than three months.
 Reported data cuts must include at least Live organization
 No single data Source should represent more than 25% of the data cut.
 Reporting must be aggregated to prevent identification.
8. Policies and Practices. In addition to compensation data, many salary surveys
will include a section on policies and practices. The policies and practices
section of salary survey is usually an overlooked gem with a wealth of useful
information
 Chapter No.06 (Pay Structures: e.g. Grades & ranges)

Definition:
A pay structure is a -collection of wage grades, levels or brands linking
related. Jobs within a hierarchy or series. It provides a frame- to implement
reward strategies and policies.

Salary ranges:
Salary range is the Span between the minimum and maximum base salary
organization and will pay for a specific job of jobs or group of job.

Salary Structure:
Salary structure is a hierarchical ranges group of jobs and salary and within
an organization. Salary structure are often expressed as pay grades or job
grades that reflect the value of a job in the external market.

 Why are pay structures important?

Pay structures are important for the following reasons:
a) Helping mentor & control company expenses.
Well Defined pay structures help well Companies monitor the amount of
money spent on salaries and control if and when additional or new money
is allocated for raise, employees, with set salary ranges. In place, the
accountants have strict parameters for budgeting and financial planning.
b) Informing employees of current and future salary expectations:
Pay Structures provide employees set figures for expected earnings. This
improves transparency open communication between employees and
employers.
c) Remain Competitive and an employer.
Using current market salary data ensures employers offering are
competitive salaries compared to other businesses in their industry. This
well help organizations attract and retain the best candidates for open
positions.
d) Helpful for calculating raises
Having defined pay grades for employees alleviates some of the
subjectivity in determining pay crises. Employers and employees should
understand the pay structure in place and their corresponding pay grades.
e) Create fair and impartial opportunities raises:
Adhering to market standards and predetermined pay grades. Helps
employers ensure fair, honest and opportunities for pay raises.
  Benefits of pay structures:
Introducing the right pay Structure, that meets both the needs of your
organization and your workforce, can provide your business with all kinds of
benefits, including.
•Fairness:
Creating an appropriate pay structure will help to ensure that your treat your
workforce farily.Employees will understand exactly where their role fits into
the organization and that a fair process exists to determine both their job
grade and pay free unthankful bias.
• Transparency:
Having a rational fair and transparent place will enable pay structure in staff
to understand how pay managed within the organization. Will also inspire
confidence in and potential committed employee’s recruits that you're to
fairies, including equality of pay based on objectives factors like fair job
evaluations.
•Motivation:
Understanding the open to career and pay progression avenues is hugely
motivating for employees. It allows for open dialogue between about what's
required to progress pay or grade within the business and, as such, prevents
less productive discussions between employees and line managers with no
real focus.
• Engagement:
Rey components to creating employee engagement ism. I employee feeling
fairly treated, understand. Long their steps can be taken to progress Career
Knowing Where they sit within organization and how their contribution adds
to the overall effort
• Supporting Management:
Pay discussions can be difficult conversations for managers to have. With
their team. Or potential new hires. A clear pay structure provides clarity in
how to "manage pay, supporting better decision- making around pay
progression etc.
• Pay budgets:
A pay structure. A basis for pay decisions and Creates affordability. By
understanding where your employees fit against the within, above your pay
or below the band decisions and allows structure in forms for effective
allocation of pay budgets. If not always saving you money, the most value it
will ensure you get. It From
 Common Types of Pay Structure
Most common types of Pay structure are.
1.Traditional: Traditional pay
Traditional pay Structures are divided into multiple pay grades. In a traditional structure,
there are more pay grades, and the pay grades scope than in other types of structures. Types
of employees, like marketing associate be given or customer a service agents may salary
range, and pay grade, are determined based on that range. The
Pay grades can be broken down as follows
Pay grade 1: $40,000+ $42000 per year
Pay grade 2: $ 42001 - $44,000/year
Pay grade 3: $44001 -$46,000/year
Pay grade 4: $46001-$48000/year
Pay grade 5: $48004 -$50000/per year
Traditional pay grades structures. More controlled than other types of pay Structures due
to the slim pay grades. In these systems, managers have fewer opportunities to offer raise.
However, traditional pay offer structures prevent employees from reaching their maximum
Salaries too quickly, which can help with employee retention of they know they have room
for growth.
2. Broadband: Broadband pay structures divide employees into types instead of
specific titles. For example, broadband structures may create divisions for
administrative jobs, service jobs and executive jobs. The salary ranges are pay
Structure wider than those of a with fewer pay grades. Traditional this structure
offers greater flexibility for pay raises but less control over employees with the pay
differences between same job types. Employer may offering employee risk and
Salary too early in their maximum Career, which limits earning potential. Managers.
Should have open communication with top executives. Concerning when and how
to raise employed pay to avoid this challenge.
3.Market-based: Market-based Structures determine on salary ranges pay grades
based and a current market analysis of comparable positions and salaries. Salary
ranges are designated for specific jobs as opposed to job type. For instance, an
organization using a market-based pay structure may analyze data for average
salaries a hotel and create a salary range
In line with these "figures
Salary ranges may be larger using market based pay structure. Like in broadband
structures, but the pay grade often narrow as in traditional.
4.Step pay: Step pay structure incorporate clearly defined pay progressions for
certain jobs within an organization. They pay increases often result from time with
the company and adequate performance industries may use the step pay structure
when detailed performance analysis is difficult. Law enforcement and government
agencies often use step pay structures.
5). Hybrid: Some companies choose to use multiple pay structures within that
Organization. They may delegate pay Structures by department job type salary
ranges.
How to choose a Pay Structure?
The type of pay structure for company may depend on several factors, including:
a) Business Size: Different sized companies often have different financial and
operational goals. Smaller companies generally need to exercise strict control their
spending. Larger companies may want to pay more than their competitors.
b) Industry: Some pay structures are best suited for certain industries due to the
nature of the field. For instance, larges, stable companies with a lot of lateral
employee transition may opt for broadband pay structure.
c) Location: Geographic location can play a factor in choosing pay structure, market
data reveal that may the most successful companies in a certain region use a one
type of pay structure.
d) Employee classification: Employees are generally full-time, part- time 06
temporary. A business with a large percentage of part-time temporary workers may
08 choose a traditional pay structure with more control.