With commercialization, money has become a primary factor in influencing the decision of the employer in hiring people. The employer aims at keeping his cost of production or service at the lowest by hiring people at the most competitive price. However, the employer has also to keep in mind that amidst heightened competition, he cannot afford to loose skilled people who have the potential to generate revenue for the company. In order to figure out the optimum salary that will serve both the purposes, the companies take recourse to salary surveys.
Salary surveys imply to analysis of the latest trends in the market as far as the salaries of the employees are concerned. The inference drawn from such studies govern the remuneration policies and the amounts of the companies. The projected salary structure also influences companies in fixing up a differential salary structure for people with skill of varied nature. It also enables companies to entice people with sufficient caliber to join their organization and thus prove productive for them.
Salary surveys are not necessarily conducted by the companies themselves. There are specialized organizations for the purpose and the reports of the studies conducted by these organizations are used as a reference guide by the companies in fixing up the salary structure.
Information contained in the survey reports is not limited to salaries, but also gives an insight to factors such as cost of living of the employees, employee re-allocation of allowances, compensation, job analysis and geographic reference. The surveys are with reference to different kinds of jobs. Some of the reports are more specific and focus on executive compensation or salaries of non-profit executives, charity executives and college graduates. Reports also give information on the periodical hike in salary packages.
Salary surveys are extremely important in the global world. This is because, parameters have to be set to determine the right amount of salary. This is possible only by exhaustive study of the global trends by use of state of the art sophisticated statistical techniques. The studies, which serve as reliable international data, sometimes take into account the statistics of 1,000,000 jobs in different industries in as many as 200 countries.
Salary surveys are the most authentic and powerful tools used by the companies to determine the remuneration policies and to keep the salaries at the optimum level.