The latest labour market figures from the ONS show there are more vacancies than skilled workers to fill them, placing increasing pressure on employers to find and keep new staff. This makes it crucial that businesses do all they can to attract employees and with over two-fifths of pay awards worth 4% or more, according to the latest analysis from IDR, benchmarking your offering against the competition is more important than ever.
Pay benchmarking is used to obtain a view of the market salary for a job or job levels. Such exercises can be used for recruitment to new roles, promotions or changes to roles, as an aid to retention, as part of planning ahead for a salary review, or as a guide in the development of salary ranges. We have a great online tool to help with this – IDR Pay Benchmarker.
Benefits of benchmarking
• Employers gain a better insight into the job market so roles can be remunerated at the right level, attracting the right candidates
• Increases staff retention as you can match the market, discouraging staff from looking elsewhere
• Compare your pay and reward package to different industries/sectors
• With recent steep rises in the cost of living, pay awards are increasing and you can stay aware of the market rate
• Supports the budgeting process with guideline salaries for when you are looking to recruit new staff.
The value of internal benchmarking should not be overlooked either: while benchmarking against the external market is important, maintaining internal equities and fairness is also a key consideration.
Organisations that do not routinely benchmark their pay and reward packages may be on the back foot when it comes to staying competitive in the labour market.
Pay Benchmarker - what does it provide?
Pay Benchmarker is an impressive online tool which gives you access to up-to-date, searchable market data on pay levels, pay awards and executive compensation.
The database contains details of 800 pay awards per year as well as 10,000 salary records covering 200 jobs from 900 companies, most of which are named. This can be interrogated by region, sector and size and can be viewed and exported from anywhere.