What do you look for in an executive benchmarking report?
Executive Benchmarking Reports
What do you look for in an executive benchmarking report? From talking to our customers we know that there isn’t a single simple answer to that question. What we have found though is that there are some elements which are essential and they have helped shape the reports we produce. Here’s a summary of what people tell us is important.
The fundamental need is for data you can trust. You are going to use it as a significant input to your decision-making on senior executive pay. And to do that you need it to be well sourced and well aligned to the roles you are looking at. You have to have confidence in the data to be able to inform and persuade your senior colleagues to take a particular course of action.
Executive benchmarking, in common with other pay benchmarking, is not an exact science. Whilst the analysis gives an impression of precision, there is also the need to apply sound judgement based on experience.
The understanding required to get a good quality result dictates that time is spent on the detail. For us this means going through a structured process with our customers. We apply our own rigorous levelling methodology which we have developed with the benefit of years of reward experience. This forms the foundation on which we perform our analysis of the market data.
The data has to reflect the relevant market you are competing in – and sometimes that can be more than one market. It also has to reflect the particular type and level of your roles. At any level, job matching purely on job titles is an approximation at best and, particularly at a senior executive level, it can be extremely misleading. Too many other factors have an influence and need to be reflected in the data.
Clear and useable reports
Executive benchmarking reports are there to inform and guide the decision-making on senior executive reward. The target audience for the reports may vary. Typically our reports are used by Chairmen, Chief Executives, HR Directors and Remuneration Committees. All require data they can trust presented clearly in a readily useable form. They want us to highlight where they stand in the relevant markets, where the issues are and where the market is trending. They do not want to have to conduct a mass of additional analysis to understand what the data is telling them.
We constantly strive to ensure our executive benchmarking reports deliver for our customers - from the Executive Summary giving a quickly absorbed overview, to the straightforward Appendices explaining our analytical methodology.
If you would like to discuss your executive benchmarking needs please get in touch.