Important Tool for Any Employer. A compensation study aggregates and analyzes internal and external data so that an employer can compare the compensation structure it offers to employees with that provided by similar employers to similar employees. Employers in both the public and private sectors commonly conduct regular compensation studies to monitor changes in the labor market. A compensation study is a valuable tool that provides a number of benefits, including those that we discuss below.
Assesses Competitiveness in Labor Market. Employers compete with each other for workers. A compensation study allows employers to determine if they are compensating employees fairly and at a level that will attract skilled workers.
Ensures Efficient Use of Limited Resources. Employers have limited resources. Personnel costs often are among the largest operational expenses for an employer. A compensation study helps an organization ensure that it is using its limited resources efficiently and effectively by not paying its employees more than is required in order to retain them.
Maintains Internal Equity of Compensation Structures. An organization’s compensation structure should be established to ensure that employees with similar jobs or skillsets are compensated in a similar way and have similar opportunities to advance their careers. If internal inequities exist, an employer might have difficulties retaining staff in the relatively lower...
Budget figures show 1.765 million permanent migrants will arrive in Australia over the next three years. Our verdict False. The budget doesn't forecast permanent migration, and other migration for...