If you are asked why most of your employees leave the company, what will be your answer?
Most of us are wired with the statement that employees leave their boss, not the company. Yet, data from Robert Half found that the very common reason employees leave is because of an inadequate salary and benefits. Everyday pressure on personal finance makes money a key driver to retain professionals almost in every organisation. The stronger hiring climate today, said Paul McDonald, means employees who don’t feel well compensated might be more willing to look for new and better-paying jobs.
See also: Base HR Salary in Malaysia in 2019
That being said, how you compensate your employees will be an important asset that brings a huge impact on overall company performance. Conducting quality and independent salary survey can be a key component in your compensation strategy as it helps attract and retain high-performed talents in your industry. Other than that, here are four other reasons why you should conduct an independent salary survey in your company.
1. Reliable data
Yes, it is true that The Department of Statistics could give you salary data that you need. The data, however, could be irrelevant or not as informative as you want. The data might also not be updated for several months. Relying on obsolete data can put your department at risk as you are lagging behind current pay trends. This would be different if you conduct your own regular salary survey so you will have access to more updated data. Salary survey will provide you with the most accurate data available so you can make the best financial offer to top talents when hiring.
2. Benefit employee morale
Having reliable data will help you pay employees fairly. You will be able to provide them with a compensation package that is appropriate and suitable for their expertise and preferences. As a result, it helps you show that you care about your employees’ well-being which eventually will improve employee morale.
3. Stay competitive in the market
Having comprehensive data that ensures a thorough understanding of pay rates and trends will help you stay at the top of business. You don’t have to worry about paying your talents low or too high. You can as well adjust your pay rate/levels in order to keep a competitive edge. The data can also help you understand better about skills that are in high demand or no longer in demand. Thus, you can attract better talents when you are looking for a better position that is in high demand.
4. Help you make a better decision
A consistent salary survey will help you form a foundation for compensation plans. The data can be your guidance in making a decision for salary, incentives, and bonus plans when meeting senior candidates or former candidates. Accordingly, you will have a confident decision in communicating the company’s benefits and compensation with potential candidates.
Read also: 2019 Salary Forecast in Asia Pacific