PayScale Tools for Today's Comp Pro! Compensation Glossary: Part 2 of 4

Compensation Today

Jenni Marquez, CCP, PayScale Compensation Professional PayScale’s Comp Glossary returns! Consider the comp pros at PayScale to be an extension of your team! 2) BENCHMARK JOB Definition: A job commonly found in the market. Why it matters: Often misunderstood but a very critical part of evaluating compensation is the benchmark job. A benchmark job is what you use to compare pay at your company with pay in the market.

Compensation Management: Salary Benchmarking and Beyond

Zenefits

Other tools like PayScale, Salary.com, and LinkedIn Salary require a subscription or payment to access data but contain a larger number of job titles and data sets. This process is called compensation benchmarking. How is compensation benchmarking done? The first step in compensation benchmarking is to build a list of salary ranges for current and future job roles. Compensation benchmarking is designed to maintain fairness for both the employer and the employee.

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When You Need to Move Beyond Data for Pay Decisions

Compensation Today

We live, love and dream about data here at PayScale, and big data is driving business and pay decisions across industries and functions. Here are some examples: You Compete With a Different Location, Industry or Company Size for Talent. Often folks will begin market benchmarking by looking at data cuts for jobs in their specific industry, location or company type/size. Compensation Plans benchmarking jobs compensation planningData, data, data.

Why Increasing Pay Isn’t Always the Answer

Compensation Today

Sonnet Lauberth, PayScale Compensation Professional In my time as a Compensation Professional at PayScale, I’ve helped over 75 organizations develop a co mpensation strategy and structure to suit their needs and spoke with hundreds of companies about the challenges they face regarding compensation. PayScale’s survey also highlighted a second point that employee perceptions about pay play a significant role in an employee’s desire to leave your company.

Get Me a Compensation Strategy, STAT!

Compensation Today

PayScale’s 2017 Compensation Best Practices Report (CBPR) found that just 37 percent of all organizations have a comp strategy. It’s the sum of all the choices you make about how to spend your compensation dollars, including the market where you compete for talent and how competitively you plan to pay in that market. Here’s an example: The Smith Company will use 10,000-employee sized companies in the Software Development industry in our local markets for competitive benchmarking.

You're Underpaying. Now What?

Compensation Today

Jenni Marquez, CCP, PayScale Compensation Professional Most organizations don’t intend to pay employees low, but market shifts and legislation changes can often result in underpaid employees. Market should be the industry, company size, and location where you compete for talent. I repeat— where you compete for talent. PayScale is a perfect example. In PayScale’s Insight Analytics, we deem an employee underpaid if their pay falls 20% or more below the target percentile.

Developing a Compensation Plan, Step 3: Select Data Sources

Compensation Today

This is a lesson from PayScale’s Modern Compensation Planning ecourse. Now that you’ve spent some time thinking about the different parts of your workforce and where you compete for talent in each segment, you can apply that strategy when seeking out your data sources. The definition of a benchmark job is that it is a job that regularly exists in the market (to compare your jobs with the market, those jobs need to exist in the market).

The top 10 recruiting mistakes employers must avoid

Compensation Today

Ignoring first-impression bias When interviewers equate “like” with competence, problems can ensue. Companies should regularly benchmark wage data before settling on a compensation package for a new hire. Use trusted sources, like Payscale, to determine fair compensation so candidates don''t run to the next competitor for more money. Tess C. Taylor, PHR, The HR Writer Let''s face it. Recruiting today takes guts.

Hiring the Wrong Salesperson is a $2-Million Mistake

HR Daily Advisor

Start with PayScale’s (free!) complete guide to compensation plans, Bring Back the Sizzle: PayScale’s Guide to Comp Plans That Get Workers Fired Up (In a Good Way). One trick that DiMisa is seeing is companies who set salary benchmarking targets at 60% to 75% of market—“We’re going to pay at 75%”—to attract people paid at market. Your employees want to bring home a bigger slice of bacon, and you want to control costs—PayScale can help with both.

How to Speak With Your Non-Profit Employees About Compensation

Compensation Today

By Sonnet Lauberth, PayScale Compensation Professional Compensation can be a tricky topic, especially within the non-profit sector where many employees feel that they are “overworked and underpaid.” Depending on your strategy, you might benchmark against other non-profits, private companies, or a mix depending on your workforce. The PayScale Compensation Best Practices report revealed that the number one reason why employees leave a company is because they think they are underpaid.

Are Promotions Leaving Your Employees Feeling Short Changed?

Compensation Today

Rita Patterson, Onboarding Manager, PayScale. First off, it’s essential to communicate how the salary for that role in your organization is benchmarked. You need to help the employee understand that how pay aligns to the market in your organization may not be apples to apples with how the competing organization benchmarks jobs in their company. Rita Patterson is a Certified Compensation Professional and manages the Onboarding team at PayScale.

5 Mistakes You May Be Making That Are Impacting Your Talent Pipeline

Compensation Today

By Sonnet Lauberth, PayScale Compensation Professional Today’s business leaders know that talent is critical to an organization’s current and future success. Mistake #1: No compensation strategy at all Your compensation strategy defines the market(s) in which you are competing for your talent and how competitively you want to pay in relation to your market(s). Start by thinking about how you define your market and who you compete with for employees.

Axiom CEO Elena Donio: “Resilience is about accepting failure as part of any learning curve”

Thrive Global

Elena is a member of the Board of Directors at Twilio and PayScale. Regularly benchmarking myself against these lessons provides me with the certainty that I’m on the right path, and when I’m not, the agency to change it.