Benchmarking Benchmarking is the process of identifying, understanding &adapting outstanding practices from organizations anywhere in the world to help your organisation improve its performance Gregory B Watson
Salary structure benchmarking
Companies today are benchmarking the salary packages provided to their people. This helps them to motivate their employees & retain best people within their company It is done through range of salaries, companies annual report, informal contacts & other forms of market intelligence
Purpose of salary structure benchmarking: Pay the employee as good as any other Organization Motivate the employees to work with almost loyalty To retain the best workforce within the Organization Compare the pay structures of other organizations for
the same job
Review the salaries when needed
Types of benchmarking Internal benchmarking External benchmarking Process benchmarking
Steps in benchmarking process
Planning Analyzing Integration Action Maturity
In Planning stage:-
Identify who is to be Benchmarked & determine the data Collection method.
In Analyzing stage:-
Determine the current Salary structure of target companies & Set future plans of your company. In Integration stage:-
Communicate the findings & Gain acceptance from deciding Authorities.
In Action stage:Implement the revised salary structure & monitor the response through employee satisfaction survey. Recalibrate benchmarks if needed. In Maturity stage:Newly invented Salary structure are fully integrated into the process. Accordingly salary is provided for the newly hired people too.
Broader ways of salary structure benchmarking
Competitors benchmarking:Salary structure benchmarking of one company with that of its market competitors Neighbours benchmarking:Salary structure are benchmarked among the neighbourhood companies. Employees may shift to companies which located nearby locations
Advantages of benchmarking It involves performance comparison with the best in
the industry It enables the organisation to incorporate creatively the best practices from any industry It helps the organisation to meet the requirements of the end user. It helps in establishing quality goals & true measures of productivity
It facilitate changes It helps in attaining a competitive edge. The interactions of professionals with benchmarking
facilitate future professional growth. This will be more useful to the organisations in future assignment.
Pitfalls of benchmarking Lack of focus and priority
Lack of commitment on the part of management
Failure to consider customer requirements Incompetent leadership Lack of proper planning Not involving the staff in the program
Conflicting objectives of the organisation & those of benchmarking
partners
Lack of adequate resources & facilities
Requirements for successful benchmarking
Understand your own company's processes &practices
thoroughly
Select the best companies for benchmarking Focus on the best practices Share companies with the companies selected for Benchmarking Involve concerned people in benchmarking Use benchmark regularly Be willing to change
SALARY SURVEY Informal Surveys:
May be conducted through telephones and informal interviews.
Formal salary survey:
It uses questionnaires based on the benchmark jobs That are also present in other companies and industries.
Steps In Conducting Salary Survey
1. Defining the Labour Market
2. List of Key Job position
3. Detailed Description of Jobs 4. Collection of Salary data 5. Compilation off Salary data 6. Results Survey
The following are the steps in Conducting the Survey
Defining the Labour Market >Establishing the boundaries of the pertinent labour market is the most critical step in the survey procedures. It involves the selection of the industry, the region or area, or the firm to be included in the survey. List of Key Job Position Common to Most Firms >This will ensure a representatives sampling of the jobs. >Selected as universal for a particular salary survey.
Detailed Description of Jobs >Key jobs are the labor grades that are comparatively
stable in duties and responsibilities. These are occupations that are common in most industries and scattered through the ladder of labor classification and commonly familiar to most people in the industry. Collection of Salary Data >This may be done through a set of questionnaires and supplemented by interviews to get the accurate information. The information must be able to pinpoint the problem area that has to be addressed by the compensation structure and the terms of payment plan.
Compilation of Salary Data >The data gathered will provide management with the
opportunity of arriving at the arithmetical average , the median , and the rage rate paid and the supplementary wage data. Presentation of Result Survey >From here the results are properly evaluated and the HRD
prepares the corresponding recommendations to the management of the most appropriate action to take relative to the revision of the current wage structure . Participating companies are also provided with the summary of the findings to foster continuous cooperation.
Compare Employers: Assistant Manager, Customer Service at Air India
Job: Flight Dispatcher Salary by Years Experience Years Experience National Salary Data
1-4 years 6 salaries Rs 235,832 - Rs 610,419 5-9 years 6 salaries Rs 294,791 - Rs 1,013,295 Country: India | Currency: INR | Updated: 13 Nov 2013 |
Individuals Reporting: 18
Companies and Industries for Flight Dispatcher Salaries
Popular Industries Salary Range Commercial Aviation or Airline Rs 218,084 - Rs 1,354,469 Key Statistics for Flight Dispatcher Salaries and Jobs Years of Experience Less than 1 year 11% 1-4 years 33% 5-9 years 33% 10-19 years 17% 20 years or more 6%
Salary survey of aircraft mechanic
Job: Aircraft Mechanic / Service Technician Salary
by Years Experience Years Experience National Salary Data 5-9 years 6 salaries Rs 318,374 - Rs 732,503 10-19 years 5 salaries Rs 420,000 - Rs 1,080,000 Country: India | Currency: INR | Updated: 11 Nov 2013 | Individuals Reporting: 16
Companies and Industries for Aircraft Mechanic / Service Technician Salaries
Popular Industries Salary Range Commercial Aviation or Airline 127,857
Rs 1,312,070 Aircraft Maintenance Services Rs 111,007 - Rs 981,201 Key Statistics Years of Experience 1-4 years 25% 5-9 years 38% 10-19 years 31% 20 years or more 6%
Survey comparison Air India typically pays Similar employers pay
its employees -12% below market
their employees:-1% below market Similar companies include: Thomson Reuters, TATA CONSULTANCY SERVICES LIMITED
