Pay is one of the most important things a company can offer its employees. It’s how employees are compensated for their contributions and dedication to the organization, and it acts as a fair way of rewarding their efforts. With this in mind, firms have been talking about improved remuneration for a long time already. This is why the amount of attention being placed on this topic is growing annually. But how do you develop an effective compensation strategy when you don’t even know what your employees’ salaries are? Well, it might be possible to obtain this information using exclusive remuneration data.
To understand the importance of remuneration data, let’s first learn what remuneration data is and what it does.
What is exclusive remuneration data and why is it important?
A compensation analysis is a thorough analysis of salaries and benefits that provides the data and insights necessary for crucial decisions.
Exclusive remuneration data is the aggregate data of a company’s top earners. This includes employee compensation, bonus, stock options, and everything that could impact a company’s pay structure. In most cases, several factors dictate how a company will compensate its employees in the next fiscal year including the past performance of executives and competitors. The information can also be used to benchmark your own company against its peers or benchmark management against the industry average.
Companies can create a compensation system that compels employees to act and perform the way they are intended to without the need for any additional information.
That’s just one of the many benefits exclusive remuneration data offers companies looking for ways to improve their compensation strategies.
Data Helps You Deliver Consistent Results
Having a solid compensation strategy for hiring and retaining top talent does not mean you have to pay at the top of the market. Data analysis reveals that companies often overpaid for certain roles and underpaid for others when they dig into market data. Consistency is one of the greatest benefits of exclusive remuneration data.
You can consistently hire top candidates by identifying a talent market, paying based on the market, and rewarding skills, experience, tenure, and performance. Having a reliable hiring process decreases your time to fill, lowers your cost per hire, and enhances the candidate experience.
Data Helps You with Cost Optimization
Cost optimization and salary structures are sometimes two sides of the same coin. Companies try to minimize expenses by all means (Exclusive remuneration data is one of them). To do so, they need to develop a strategy for remunerating their employees so that it can help them attract, retain and motivate employees.
Data Helps You Make Offers That Employees Can’t Resist
By using data-driven compensation strategies, you can make a compelling offer to the candidate. Putting your best offer forward at the beginning may seem counterintuitive, but it can be extremely effective. There are several compensation strategies you can choose from, such as leading compensation which sets salaries aggressively above market rates or meeting the market compensation which pays employees the same as the market. In this way, employees are paid fairly and expected to perform well.
This approach may work well if you are genuinely trying to make the best offer possible. Your recruiting process must be built on trust to make this an effective strategy.
That’s just some of the many benefits exclusive remuneration data offers companies looking for ways to improve their compensation strategies. While there is a lot of data available about how to compensate employees, most of it is piecemeal.
That is why MERIT500 brings you original, unique, and exclusive data that can assist you with developing your compensation strategies by incorporating the latest remuneration trends.
We provide organizations with exclusive reports that help them price jobs fairly, prevent discrimination based on gender, race, or relationships, and treat their employees with dignity and respect. It is important for employers to establish equal pay standards to increase workplace trust and protect themselves from legal action as a result of unequal pay.
Interested in learning about remuneration trends? Contact us today!