Answer to Question #158134 in Management for ricky

Question

Why organizations use the Salary Surveys? Give Examples to elaborate your answer.

Answer 1

The Need for Salary Survey

Generally, employees form the most crucial asset of the organization or any business enterprise. A significant sum of the organization's earning is spent on catering for employee's salaries and other forms of employee benefits. For instance, it is estimated that, on average, a company spends more than half of its revenue on employees. It is essential to have in-depth knowledge of the salarying technique, therefore. To understand this fully, one has to carry out a salary survey across other companies. The approach used to compensate employees in a company offers a significant impact on the company. To get to know the best compensation strategy, a salary survey provides a key component. It enables the company to hire and retain the best talent in the company.

First and foremost, running a salary survey well helps a company to attain a competitive position. For instance, employees contribute significantly towards the competitiveness of a company. When employees are taken care of to their satisfaction, they will be willing to perform their duties to extremes without complaint. Timely payment of bonuses, incentives, and salaries motivates the employees to achieve a quality job at work. When the output is quality, the customers' needs are met, hence attaining a competitive position across the industry.