Why conduct Salary Benchmarking? It takes time and could be a new cost to the business. Well If you want to attract and retain the best leadership talent, you need to offer the most suitable compensation package. Therefore, it is vital to understand what the market dictates on a regular basis.
The answer: Salary Benchmarking.
Imagine: you’ve just lost a top candidate or high-performing employee to your biggest competitor.
People may say ‘it’s just one of those things, but it could be a sign that it’s time to adapt your approach to attracting and retaining the best leadership talent.
To do this, start simple. If you want the best, offer an attractive compensation package that shows you mean business.
But how do you know what to offer?
In this blog, we break down the use of Salary Benchmarking including, why it is important, how it can add long-term value to your organisation and the Innovex approach that will allow you to be reassured, that you won’t lose out on the best talent again.
What is Salary Benchmarking?
To understand Why to conduct Salary Benchmarking, we need to take a step back and define what Salary Benchmarking is.
Salary Benchmarking is a process to help identify the pay information for a specific role externally within your market and how this compares to your internal structure. It’s also a standard tool used in a leadership search to enable a firm to identify and attract the most suitable candidates that will drive a business forward.
Understanding a breakdown of the compensation packages offered to market-leading candidates can allow you to understand what level of the candidate is needed versus what budget you have available.
Generally, by engaging a search firm to perform a Salary Benchmarking exercise, their resources will be able to provide you with an average salary, bonus and equity identification for either one or many roles or functions versus the wider industry you are in.
Innovex intuitive Salary Benchmarking provides a unique approach. Unlike other benchmarking tools, the reports are comparative with real-time, detailed information of the specific sector of the Tech, SaaS, Cyber Security and Fintech industry.
Why Conducting Salary Benchmarking is Important?
Benchmarking Compensation externally is essential for any business looking to adapt to their market constantly.
As the industry is constantly changing in this post-pandemic world, it is essential to have the most up to date pay information on the key players within your industry. By researching the pay strategies of your organisation’s competitors, you can be confident that your salary offerings are competitive in attracting and retaining the best talent in your operating market.
This information will help you identify what aspect of your compensation packages you need to adapt to remain profitable and reassure you that the industry’s financial salary decisions are in the right direction.
Most SMEs and MNCs will decide to use their HR team to conduct benchmarking when replacing or creating a role. Whilst this could be seen to reduce costs, it can cause delays but also be based on historical information that has not been adapted to reflect recent market changes.
Unless your previous tenure for the advertised role were 12 months or less, using this information could give an inaccurate reflection of what compensation package is suitable.
How often should I get my Salary Benchmark report reviewed?
Our Innovex experts recommend reviewing your Salary Benchmarking report annually, so your employee’s salary is based on current market activities.
Our advice: Pick a Salary Benchmarking firm that uses real-time data. Click here to contact us to find out more
Why conduct Salary Benchmarking?
As highlighted in this blog, Salary Benchmarking aims to allow your business to remain competitive within your ever-changing industry.
By offering a competitive compensation you are giving your current employees and your searches, then you can achieve the following:
Improved employee retention
If you have a leadership team who is motivated, meeting targets and are driving innovation, then the chances are you want to keep them working for you and not a competitor.
Using the Innovex Salary Benchmarking service, you can try your best to ensure that your c-suite and leadership teams are happy and fairly compensated for the role they are doing. Our approach is to identify compensation information from the key players within your industry, giving you all the data you need to create a package with which the rest of the market can’t compete and will satisfy your employees.
Increased employee retention will save time and money from not having to seek replacement staff and avoids dips in productivity caused by onboarding processes.
Attract the best talent
Attracting the best talent is made a lot simpler when using a compensation benchmarking company. By identifying the correct pay level, salary packages and softer benefits the best talent within your specific industry requires, you can target your hiring process to include a package that will turn the heads of the leading candidates.
What’s more, the approach makes the eventual search more streamlined. By providing accurate information that reflects your required role and operating industry, you are getting straight to the answer of a pool of relevant candidates with whom you are comfortable engaging.
Reduce the risk of an unneeded high salary
At Innovex, we offer an honest and candid approach with Salary Benchmarking reports. Helping you get the best talent for your leadership team without overpaying.
The information you receive through a detailed research report is up to date and data-backed. So, there is less risk of advertising for a higher salary than necessary to hire the right people
Influence improvement
As a leader or a manager, you can identify something not right within your team/organisation, for example, lack of employee motivation, high turnover, and replacement gaps within high-performing roles.
Using Salary Benchmarking can determine whether their pay approach may cause these areas of improvement. If so, identify potential ways these could be improved.
The Innovex Method to Salary Benchmarking
Innovex Salary Benchmarking approach is a 4–6-week process that uses impartial, real-time data to provide a compensation package report that correctly represents your search industry and location. We take on the heavy lifting to save you time and money. After an initial briefing with your organisation to understand the current role and its responsibility expectations. We will research your geographical scope and specific industry pool to produce a detailed report, helping you make a strategic decision on your next step.
And if you do want to take the next step after learning more about the current market and salary indications, then a research list has already been created to then engage the relevant candidates from this pool.
Summary
Why conduct Salary Benchmarking? Well, Salary Benchmarking is a strategic tool to attract and retain leading talent within your organisation’s industry. By using a Salary Benchmarking company, you can identify role compensation packages within your operating market offered by your competitors. As a result, it helps you form a more strategic offering in your search for senior talent. You can increase; employee retention, attract the best talent, identify areas of improvement within an organisation, reduce, unnecessary costs and establish a new USP.
Overall, it shows that you are a serious player who is doing your utmost to secure the right talent for the organisation.
Innovex Intuitive Salary Benchmarking offers a report that reflects the real-time scope of the market. Through having data-backed information about your geographical and industrial search pool, they will provide you with a report that will help you make a strategic salary decision with ease. Within 4-6 weeks of an initial briefing.
To start your Salary Benchmarking journey, contact us HERE
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