Why are Salary Surveys Important?
The short answer is that Salary Surveys provide the necessary market data to build competitive pay structures for your organization. While there are many objectives to a properly formulated compensation strategy, the two most commonly referenced are:
- Ensuring our plans are internally equitable, and
- Ensuring our plans are externally competitive.
Meeting both of these criteria enables your organization to attract, retain and motivate the right numbers of the right kinds of employees. Good Salary Survey data (i.e. from competitive sources like your State Bankers’ Association’s Salary Survey) provides you with the information needed to ensure your bank’s compensation plan is competitive.
Comparing roles to Salary Survey market data is important, but it’s not the only step to creating a competitive compensation program. First, before you can tailor a compensation strategy to your organization, you should have an understanding of your organization’s compensation philosophy and strategy (How do we want to pay?).
Second, you should clearly define the key roles within your organization including current and accurate Job Descriptions for each position. Accurate job description detail facilitates the comparison of market data to how you’re currently paying your people (Pay Practices vs. Market).
Taking this information into consideration, you can build one or more salary structures, as appropriate, with grades and control points (Grade Minimum, Midpoints and Maximums) customized to our unique organization’s needs. By combining your salary structure(s) with performance management ratings, you can pay for performance delivered as well as accurately anticipate, budget and plan for total compensation costs.
Because building an effective compensation strategy is a nuanced process with varied approaches that depend on your organization’s unique priorities, Matthews, Young Consulting is offering a new Learning Lunch Compensation Webinar Series this fall to help you turn salary data into insight and ensure your organization attracts and retains the staff necessary to achieve your goals. The topics and dates are listed below:
- September 7th – Using Survey Data to Value Jobs
- September 13th – Building Effective Job Descriptions
- September 21st – The Compensation Audit: Do your pay practices match market and your intent?
- October 5th – Using Job Values to Build Salary Structures
- October 19th – Principles of Merit Pay
- November 2nd – Merit Pay Budgeting
All webinars will start at Noon and last for about an hour.
We’re currently discussing the topics on Twitter; send us your questions and suggestions @MatthewsYoung!
Members of the GBA, NCBA, SCBA, TBA or VBA can receive a complimentary invitation by emailing me at W.LaFontaine@MatthewsYoung.com. If you are not a member of the State Bankers Associations listed above but would like to attend the webinars, the fee is $300 per session and you can register at http://matthewsyoung.com/WebinarRegister3.htm. We look forward to working with you to craft a current, competitive and most importantly effective compensation strategy!
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