No compensation benchmarks to stay market competitive?

Each organization wants to be market competitive in their Total Rewards strategies, aligning pay structures with external benchmarks to attract and retain best talent. However, a common challenge arises when there isn’t enough reliable compensation data internally to use towards external benchmarking. You may not have a salary range, or a job grading structure or your pay bands do not stack up accurately?

Where do you start to fix this?

Here are a few quick fixes (not to be confused with a well planned, thoughtful total rewards strategy or solution) that help you preserve market alignment and internal equity, even when compensation data is sparse or unavailable.

-            When internal benchmarks are irregular, identify close match of specific industry roles with comparable scope, complexity and similar outputs and use them as reference points to maintain consistency.

-            If you are unable to find the exact / closest match in your industry, broaden your parameters to increase market insight, though be mindful of sectors, organization size, revenue etc. that can significantly impact salary levels.

-            When you do not have a job grading structure and/or salary range, review the midpoints of the average salaries of various jobs you may have and place the new job accordingly, given the job duties, skills and abilities.  

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