Salary surveys are conducted to determine standard, average and minimum remuneration paid by employers. These studies target similar jobs in economic sectors within a profession or region. The primary purpose is to establish market trends, collect dependable and accurate data, and develop competitive job descriptions that attract and retain employees.
Salary surveys are made up of tools that help employers create pay categories and packages. These are broken down into varying job groups differentiated by basic pay and accompanying benefits plans, such as medical insurance, paid holidays, sick leave and retirement.
Businesses collect this information for planning purposes. Employers depend on salary surveys as a way to gauge the overall cost of doing business. Labor costs affect pricing and competition strategies, which determine the skill levels of workers recruited in a company. Businesses set pay rates while trying to match market benchmarks.
In a dynamic job market, businesses use salary surveys to determine organizational staff abilities, gaps, training needs, knowledge and skills, as these factors correlate closely with pay grades. More qualified and experienced employees generally have higher salaries.
Employees benefit from these surveys by understanding what employers are interested in. Those with newer or higher education qualifications and improved skills stand a better chance in moving to better-paying jobs.
Government authorities use salary surveys to regulate job markets and project tax revenue collection. With this information, they can create short- and long-term goals at all levels of government.