What are compensation data and the collection of data through surveys in Canada?
Posted: Dec 18, 2017
Information about salaries and benefits that employees receive after all the work they do in an organization is called the compensation data and the data is generally collected through compensation surveys. Large organizations routinely conduct compensation surveys to determine prevailing pay rates and benefits. The data collected from these surveys not only determines the low, high, and average salaries for a given position but also provide a sense of what other organizations are paying.
What is compensation data?
Compensation data includes an extensive range of information about salaries and benefits that employees receive after all the work they do. The data is generally collected through the surveys of employers. Some of the compensation surveys attempt to give an overview of an industry or sector, while others focus on specific positions or on the specific type of organizations. The information from compensation surveys is used by industry organizations and policymakers as well as by employers and employees.
Benefits of compensation data:
According to the research of HR Counsel for the Nonprofit Sector, there are commonly two most important benefits of compensation data are:
- Compensation data helps organizations compete for talent: Most of the non-profit organizations operate on a lean budget and many pay relatively low salaries to their employees. But there is more to compensate than salaries. Compensation also includes the factors such as flexible work arrangements, a stimulating workplace culture, and professional development opportunities. Research indicates that these non-financial forms of compensation are important to employees. The critical thing is to think broadly and creatively about what kind of compensation system will help your organization and your employees get the best from each other. Survey data can illuminate a range of compensation practices and possibilities.
- Compensation data support fairness in the workplace. Compensation is an important factor in an employee’s sense of whether he or she is being treated fairly by an employer. It is important for morale and organizational effectiveness that employees feel appropriately rewarded given their role within their organization (internal equity) and relative to employees performing similar work in other organizations (external equity). The key is a considered, transparent, and defensible approach to total compensation.
Collection of data through surveys:
Surveys are conducted on the annual or semiannual basis. There are normally two categories in which the surveys are conducted. Custom and standard. Answering very specific questions in a survey from a narrow selection of peer companies is called custom survey. These custom surveys tend to be available to and used by the participants only. On the other hand, standard surveys are often published each year attempt to cover the same range of companies and jobs. These broad surveys are sometimes sold to on-participants and made available to members and customers of the survey sponsor. This is how the surveys are conducted.
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