Organizations need to make critical decisions regarding how they would like to evolve their pay programs. Information from credible sources helps businesses make those decisions. The phrase ‘data is the new oil’, and ‘in God we trust, all others must bring data’ is so apt in this ever-evolving talent landscape. Credible Market Survey results provide valuable information on trends, HR practices, and, importantly, pay information for similar roles.
It is not just about participating in salary surveys, but sharing information and receiving information from sound survey organizations is critical too. With the advent of crowd-sourced platforms and access to social media, credibility becomes very important. Some employers subscribe to both traditional salary survey vendors and crowd-sourced data. This not only helps in pricing jobs internally but also gives a sense of what is circulating out there. Some organizations even establish job worth hierarchy primarily based on external market data, such as salary levels paid by other employers for similar jobs.
Defining the labor market (peer group) is a key aspect for organizations striving for external competitiveness. Understanding the flow of talent (incoming and outgoing) can to some extent drive the peer group. Industry-specific surveys are a great source to get a sense of the peer group. Subscribing to multiple salary surveys or expanding your peer group to include organizations from other businesses can give a bigger picture.
In conclusion, be cognizant of legislation around sharing salary information with other organizations. Competition legislation in some jurisdictions may restrict or direct how a survey is to be conducted. While US Antitrust law has clear stipulations, Canadian entities may want to consult their legal team to ensure their practices comply with competition legislation.