Benchmarking benefits scheme in compensation management
What is benchmarking and why is it important?
The definition of benchmarking in business: Business benchmarking is the process of comparing industry and general business best practices against your own to identify performance gaps and achieve competitive advantages. This can be applied to any product, process, function, or approach in business..
What is benchmarking in compensation management?
What is compensation benchmarking? Compensation benchmarking is the process of using internal job descriptions to match to established salary survey jobs in order to identify the current market rate for each benchmark position..
Benchmarking can be utilised to help create progressive salary bands, or compare your total rewards package against your competitors.
Compensation benchmarking helps recruitment teams determine competitive salaries and benefits for different positions and attract top talent. Including your salary range and benefits in your job descriptions also increases transparency within the hiring process.
Compensation benchmarking is the process of comparing the job summaries and descriptions at one firm to the same or similar positions in the
Benchmarking helps to make the right decisions in terms of salary management and accordingly influences significantly the cost management of the organization. These two aspects have a significant impact on risk management when considering losing key talent as well as incurring escalating costs.
Benchmarking compensation and benefits is a crucial step in developing a competitive and fair compensation and benefits strategy for your organization. It helps you align your pay and perks with the market, attract and retain talent, and optimize your budget.
There are a number of reasons for instituting a compensation benchmarking process, including: Creating salary ranges (also called compensation bands) to use in recruiting and to drive compensation changes for existing employees. Assessing compensation gaps, and identifying attrition risks stemming from those gaps.
How to benchmark compensation & benefits?
The final step in benchmarking compensation and benefits is to implement and monitor the changes that you have decided to make based on the results. You need to have a clear action plan, timeline, and budget for implementing the changes. You also need to have a system for monitoring the impact and effectiveness of the changes.
How to Get Started
Below are a couple of steps that can put you on the right track in designing competitive employee benefits that help you attract and retain top talent.
What are the elements of salary benchmarking?
The elements of salary benchmarking include:
compensation strategy
salary surveys and job matching. Together, they help you find the correct data and then analyze and interpret it. A compensation strategy or plan describes how a company intends to align HR costs with its overall goals.
What is a total remuneration benchmark?
A total remuneration benchmark provides a more complete picture than just base salary comparisons. Even though one company’s compensation and benefits package does not include:
a generous bonus
an attractive pension scheme
or a company car
they should know whether their competitor’s package offers these.
Why is benchmarking important?
Benchmarking is a crucial step in building competitive benefits packages. Here’s everything you need to know.
Benchmarking benefits scheme in compensation management
The New Zealand Emissions Trading Scheme is an all-gases partial-coverage uncapped domestic emissions trading scheme that features price floors, forestry offsetting, free allocation and auctioning of emissions units.
The New Zealand Emissions Trading Scheme is an all-
The New Zealand Emissions Trading Scheme is an all-gases partial-coverage uncapped domestic emissions trading scheme that features price floors, forestry offsetting, free allocation and auctioning of emissions units.
