The Myths and Facts of Pay Benchmarking
First of all the myths of pay benchmarking:
- You have to compare identical jobs “Apples with apples”
- You need data from identical companies “The comparators”
- There is a benchmark salary for a job “It’s scientific”
- Benchmarking tells you what to pay “It’s the answer”
And now the facts:
- No two jobs are identical
- No two organisations are identical
- At best you can get to a range of salaries
- It’s only an input to making sensible decisions
- You do not have enough time to fill in lengthy and multiple questionnaires!
So we built the PAYanalyst process to meet the needs of real HR people doing real jobs. To be fair, if you need a salary survey that defines every role in finite detail and sets out to match jobs with a fine degree of accuracy then PAYanalyst might not be for you. But our customers have told us that surveys that set out to do this often in reality fall short of the mark. As the user you can spend a lot time job matching your roles only to find that there is not enough data in the survey to make a sensible decision. And we know for fact that if the job matching is time-consuming then people are inclined to take short-cuts that devalue the process.