Employee Compensation Survey: The Secret Successful Business Owners Decided Not to Share
Posted: Nov 21, 2017
No workplace issue is more important and more polarizing than compensation, and this is why an employee compensation/salary survey is highly important. Before you start handing dollars away, you will look to their competition and other businesses to see what the market is doing. Are other businesses giving better compensations to their staff? Where does your company rank in the marketplace?
Employee compensation survey, when done well, can help you enact a compensation plan that is motivating, energizing, and a driving force in the success of the organization. On the other hand, when you do not do a proper survey to know the right steps to take, your compensation plan can be deflating, de-motivating, and have a crippling effect on every aspect of the organization.
Companies spend tens of thousands of dollars on elaborate compensation plans, bonus and commission structuring, and still end up with disgruntled employees, sub-par performers, retention issues and difficulty recruiting competitive talent; this is because they neglect taking the right step before proceeding to doing this.
As a business owner, your compensation must be:
1. FAIR: fair to your employees and your business.
2. JUST: It must do justice to the organization and its vision and goals, and it must be justified by the performances rendered by the employees.
1. Your compensation must be FAIR: fair to your employees and your business:
This means that your compensation plan should favor your employees and you. It is important that you satisfy your workers, but you shouldn’t put your business in jeopardy while you do so. Ask yourself:
- What is fair to the stakeholders? Will the compensation plan, when installed, give the organization a strong opportunity to be profitable?
Compensation plans that provide automatic bonuses to employees, even in years when the organization is not profitable, are NOT fair to the organization or its stakeholders.
- What is fair to the employee? Will the compensation plan give the employee a strong opportunity to earn a salary competitive in your industry for the tasks and responsibilities required?
Conducting an employee compensation survey will help you greatly to determine what to do.
2. Your compensation must be Justified: It must do justice to the organization and its vision and goals, and it must be justified by the performances rendered by the employees.
Here are few questions to ask:
- Does the compensation plan do justice to the organization? Will this compensation plan allow the organization to meet its short term financial requirements, achieve its long term financial goals, and ultimately grow into the vision of its leaders?
- Does the employee's performance justify the level of compensation paid? Will the organization receive a reasonable return on its investment ("ROI") in each employee? To insure that there is a reasonable ROI a portion of the compensation should be incentive driven whenever feasible and the employee's performance should be benchmarked and measured against objective criteria quarterly.
So many business owners in Canada have been able to find answers to the above questions by conducting an employee compensation survey.
You have seen what your compensation plan must entail. There are so many benefits you will get from conducting an employee compensation survey; even more benefits are explained below:
Benefits of conducting an employee compensation survey
- In Canada, based on the result gotten from conducting an employee compensation survey, companies are able to set up effective and well-balanced compensation plans that favor both the business and workers.
- As a business owner, you will get updated information that enables you take timely measures to keep your employees motivated and productive.
- You will be able to determine the right and juicy compensation plans that will assist you hire the most talented workers in the industry.
Employee compensation is very important as it enables you have well-motivated and highly productive staff. As a business owner, you must enact a compensation plan that is fair and just; conducting an employee compensation survey will help you do this properly.
With an employee compensation survey, you will be able to:
- Formulate the right compensation plans
- Keep your workers motivated and productive, and
- Employ the most talented workers
You will decide how well your business grows. If you haven’t done an employee compensation survey yet, today isn’t late. Contact Coiri Consultants, they conduct the best employee compensation survey in Canada.
Coiri provides comprehensive yearly reporting services of benefits surveys, salary surveys, employee compensation surveys, and executive compensation surveys in Canada. Custom surveys, human resources legal advice by us.