Speak to an expert +44(0)1733 391377

Toggle Sidebar
Ahead of Brexit, we have highlighted how employee engagement is critical to overcome recruitment and retention issues that this might exacerbate. As a result, you want this year’s pay review to be competitive, targeted and efficient. 

You need to know how your pay scales compare to the external labour market to drive down employee turnover by ticking the box of competitive pay in a buoyant labour market. Having insight into market trends and effectively collating internal and external reward data will help target spending and help you recruit and retain high quality staff in a fluid environment.

Using pay benchmarking

Conducting a pay review requires a range of skills including data analysis, data modelling and job evaluation. You will need to collate information (for example, salary surveys and national statistics) and establish a single, accurate market range for each job.

Pay benchmarking (comparing your pay to the market) is an important factor in deciding what to pay your people. To effectively benchmark, you must make like-for-like comparisons with the external market. That means choosing the right comparator organisations and accurate job matches. Using a range of information, including multiple salary surveys and national statistics can also help you make more rounded decisions.

Benchmarking pay presents a few challenges for HR professionals to overcome, including:

  • Selecting the right sources of information from a credible provider who understands your market well;
  • Submitting your employee data before you can receive market pay information (this can be time-consuming and needs specialist skills);
  • Collating and summarising both your employee data and external market information into a single structure;
  • Taking account of the nature of work (function or family groupings) and employee seniority (level) within the organisation;
  • Taking appropriate account of the factors driving executive pay, such as turnover, sector, reporting structure, board membership and so on;
  • Deciding how to act upon market pay findings (for example, creating market-led salary scales to structure pay decisions);
  • Agreeing how to communicate decisions to executives, line managers and other staff through transparent employee engagement; and
  • Making sure all benchmarked data remains confidential, and complies with data protection and anti-trust legislation.

How can Paydata help with my pay review?

Data Protection

Comply with data protection and anti-trust legislation (we are Data Protection Act registered).

Communicate

Communicate the results across your organisation

Pay Trends

Collate information on more general pay and economic trends

Job Matching

Match your jobs to our data sources, third party sources and different methodologies

HR Groups

Participate in HR Groups to obtain complementary information

Relevant Surveys

Complete relevant surveys questionnaires (our own surveys are flexible and we often collect data via payroll downloads)

The Market

Define ‘the market’ for each job (by geography, industry, specialism, seniority and so on), providing independent advice and expertise

Combine Pay Structure

Combine information from different survey sources or methodologies (including your own grades) into a single structure

Collate Pay Structure

Collate all the data into a single structure and develop salary scales, using our own bespoke salary software

Market Data

Suggest the most appropriate sources of market information for your jobs, whether ours or someone else’s

Would you like to know more about our pay review software? Get in touch to discover more.


Related Articles

Read More
Blogs

With less than three months to go, how is Brexit shaping HR policy?

With the 31 October Brexit deadline fast approaching, what this means in practice continues to remai...

Explore
Read More
UK Reward Management Survey

Top five trends in UK reward management right now

Our spring UK Reward Management Report 2019 marks the tenth anniversary of running our bi-annual sur...

Explore

Stay up to date

Sign up for briefings on pay benchmarking, salary surveys, reward strategy and statistical updates.

sign up for updates

© Paydata Ltd 2019 All rights reserved.
Registered in England no: 3632206
VAT no: 728 0808 28

Paydata Ltd, 24 Commerce Road, Lynch Wood, Peterborough, Cambridgeshire, PE2 6LR