A comprehensive guide to conducting compensation surveys to determine competitive adjustments to base salary ranges

Abstract

The compensation process is a complex network of sub-processes directed toward compensating people for services performed, and motivating them to obtain desired levels of performance. Among the intermediate components of this process are wage and salary payments, the awarding of other cost items such as insurance, vacations, sick leave, etc. (fringe benefits), and the provision of essentially non-cost rewards such as recognition, privileges and symbols of status. However, the broad subject of compensation in terms of cost to the organisation may be examined in two sections, namely, wage and salary administration, and fringe benefit administration. The compensation survey forms an integral part of both administration processes, and thus becomes a necessary and essential device in the determination of the final compensation package to the employee.