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Salaries And Compensations – The Challenges And Solutions


 

A good job but lesser pay isn’t going to work for a long time. Neither is it going to work the other way round. An employee is always looking for the good, both in terms of the job and the pay. And, there’s nothing wrong in that! If the employee is eligible and skilled, seeking a good pay from a good job isn’t incorrect. However, the sad part is that they just don’t get that so easily when they’re out for interviews. In fact, majority of employees are always wondering why it’s so hard to pull even a simple pay range from an employer.

Salary decisions

While speaking to fellow employees or colleagues about the salary or wages isn’t a moral activity, it is yet seen that salaries, wages, and even compensations are discussed and compared. And, both employers and employees are always having a difficult time figuring out the right pay for a particular position as well as a particular individual for the job at an organization. Negotiating salaries shouldn’t be the way a wage is decided, but unfortunately this is the practice that is widely followed.

Salary laws

A number of state and local laws have been established for the salaries and compensations of employees, most of which are always seen to be siding with them. But, the whole point of providing service for an employee is fair and appropriate renumeration. There should always be equal pay for equal work. In fact, if the employee isn’t receiving his or her remuneration as per the employment agreement, they can file a civil suit for arrears in salary. That’s because as per law, an employee cannot be given wages less than the legal minimum wages. Pay equity is a big topic for recruitment, as it is a key method for helping an organization deliver on diversity, equity, and inclusion goals. Making sure your people are paid fairly the minute they step into your organization helps solve many issues down the line.

The compensation challenge

Compensation is another challenge faced by employers. There’s a mixture of hard data gathered typically through surveys, and strategy that takes place to determine the right salary and compensations that should be given for a given job position. There’s a reason why so many employers are dependent on traditional compensation surveys and data providers – it’s because it’s pretty difficult for a company to get salary data from competitors in the same industry.

Another challenge here is that compensation data starts aging the minute it is collected. This is why compensation data providers must balance the cost of having fresh data, with how much the market will bear for that data. Even if the data is fresh when a company first gets it from a provider, it is important that the data is updated at a regular pace.

Pricing a job today

Pricing a job today is tougher than ever! That’s because the COVID-19 pandemic has brought about more of remote working, and this has changed the way an employer would otherwise show a simple price range for a job. So, other than the skills, experience, and specialization, the nature of work and location have also become prime factors for consideration while deciding on a salary.

Technological assistance

With technology being of prime importance today, it can also do a great deal in terms of salary and compensation decisions. Especially for companies with a solid compensation strategy, it seems like a major opportunity to lean on partners to offer a technological solution.

The right technologies can bring to you a great solution. A few simple questions on a website, or from a chatbot, can help get instant feedback on the compensation. This way, if you think that you are at a market rate, but you’re actually lower than what you hope to be, you would be well informed. Even simple geolocation that dynamically generates the salary range for a particular region can take care of location-based differences.

WalkWater Talent Advisors is one of the leadingleadership hiring companies in India, that follows a detailed and structured methodology, carrying out interventions in a focused, structured, and professional manner, to enable key decisions on recruitment and wages issues. In addition, you can also get information about talent trends, market compensation, and talent related sector specific data here. Thus, it’s not only about recruitment, but about talent advisory too!

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