Salary Survey

Salary Survey Do you know what a salary survey is? If not, here we will show you useful information about this important topic.

A salary survey is an important tool that provides useful information for following and monitoring the desired pay market. Usually, the salary survey is provided by an external consultant that is responsible of gathering the compensation information and salary details about the individuals in order to provide feedback about the pay market.

What is the best salary survey today?

As you probably know, there are a large variety of salary surveys today that can help to solve the current needs of any business. Generally, the decision is taken due to many factors including price, the seriousness or the person, the confidentiality of data, the sample of companies it represents, the geographic region and others.

To decide among this great variety, we must reflect on what are the most important needs of the company? It is important to know if there is a defined mission and a growth plan, because it will make easier to detect the reasons why the company needs to know the salaries of the market, which market interests you, which are difficult positions to fill, what talents to keep, etc.

Over years, salary surveys have changed in many aspects including form, substance and methodology. The firsts were made with a very specific purpose: to know how much companies have to pay their workers, the main feature of this type of salary survey was that once was known the amount to pay the problem was solved. However, the difference between the quality and quantity of work or the worker's seniority was complicating the comparison. Another influential factor was the growing competition between companies and the need for more and more qualified staff. A survey is a set of data obtained through an interrogation with a defined purpose, in this case, information about salaries. The result usually provides a comparison of the salaries to the same type of position.

Some studies make some form of valuation, that is, assign a value to the position according to the responsibilities and activities performed. The valuation may be through a system of points or factors, classification or alignment level, where are considered the functions, hierarchy, responsibilities and others important factors.

Having analyzed how to define the positions, we must review how the information is collected and the presentation of results. The company generally provides data through a questionnaire on the positions involved, and the salaries and benefits allocated to each. Some pollsters collect information in a personal interview or through electronic means in order to have the appropriate data. The results are shown in different forms of measurement and comparison: in quartiles, geographical areas, hierarchical levels, specific sectors, economic turnaround, among others. It is also important to remember that the specialization of the type of survey that is acquired affects directly the kind of results you get.

As we can see, salary surveys are a useful tool that helps companies to take important decisions.