Compensation: Do it right

It is important when you are posting a job for the workload to match with the salary offered. You wouldn’t have a CEO work for minimum wage, right? But how can you know what is appropriate compensation for every job? Odds are, you haven’t worked in every job in your company, so you’ll have to do some research to figure out how much each position is worth.

Compensation is important to keep employees as well. If you have a good thing going with a good employee, the last thing you’d want to be hit with is: “I got another job offer that pays more.” If you keep up with the times by using compensation databases, you’re more likely to be on the ball and employees will have one less reason to leave.

Payscale is a great option for most jobs. It is a compensation website that “offers an objective opinion of compensation for a specific job in a specific area, for a specific size company.” Amy Preston, Director of recruiting at SRS says. “Companies use this to make sure they are competitive outside of their organization and consistent within their organization.”

Payscale has just gone through a major renovation on the website. It has added some features that make the search results more accurate. The new system does come with its flaws. It has become more cumbersome, which walks hand-in-hand with the better accuracy. As important as accuracy is, there will always be error due to job title differences. For example, there could be two job descriptions written exactly the same for sales position. One company could call the position a Sales Director, while the other calls it a Sales Manager. This can skew the accuracy of search results. Fortunately, Payscale has a large enough information base to minimize the inaccuracies, so the employer or recruiter can get a targeted range of appropriate compensation benefits.

Take this quiz to find out if you are being underpaid: