Do you guess at your sales with your largest customers or price your leading product based on a conversation with a former employee? Do you make a major investment decision without evaluating as much market information as is available? Of course not!

Why then would you determine the salary, bonus and stock levels of your key executives and employees based upon anecdotal pay amounts or self reported salary data?

All companies strive to use as much competitive data as possible in all areas of their operations. Information that lacks validity or is anecdotal is not useful.  If you are not availing yourself of the most current, valid competitive information on all facets of your company’s pay, you are likely paying too much, or not enough to attract the caliber of talent you need.

Focused, industry-specific market information creates a competitive advantage and provides the organization with guidance to make informed decisions. Industry specific compensation surveys provide competitive data on prevailing pay levels for your jobs. These surveys become a key element in your human resources decisions at all levels of your company.

• Compensation costs likely are the largest expense for your organization. Strong competitive data assists management in making rational decisions that preclude paying too much or too little.

• Detailed knowledge of the market level of pay for industry specific positions enables competitive, consistent and defensible pay levels to be set across the company.

• Regular participation in industry-specific provides trend information by position. Data movements are not symmetrical so not all disciplines and levels experience compensation changes of the same magnitude.

• Data on prevailing pay and reward practices enable you to design and administer competitive, cost-effective incentive and stock plans. Effective pay plans help your company ensure the recruitment, motivation and retention of staff.

So, why use non-validated and anecdotal information to set your pay or design your pay practices? Find relevant compensation surveys to your industry and participate. It’s a cost-effective way to make better compensation decisions.  Survey participation leads to results.

 For full article, click here: Why Participate in Compensation Surveys