Chapter 9. Salary Surveys: A Snapshot
Market data obtained from salary surveys create the foundation for a viable compensation strategy. When combined with economic statistics and business strategy, they create the infrastructure of an organization’s salary practices. Just as DNA provides information used to construct, identify, and operate the human body, market data obtained from salary surveys are used to construct and operate organizations’ pay programs.
Market data evolve from salary surveys that are compiled and analyzed periodically to determine how well the company pays relative to the market. How the company statistically analyzes, charts, and uses the data is a function of its corporate compensation strategy. Then, pay is delivered to employees through base salary and bonus/commission programs and maintained using salary administration guidelines and other pay delivery systems. Critical to this effort is effective communication of all components of pay to earn the most satisfaction from employees, and, ultimately, high productivity and success for the company.
The Big Picture
Where do salary surveys fit in? Why do we use them?
An organization has many resources to achieve its goals. Even though these resources include land, material, capital, and people, it is only people who make decisions about and do things with the land, material, capital, and the people. An organization’s goals are accomplished only through people. Hence, the major challenge of any organization is to ...