Salary Benchmarking Services

Salary Benchmarking Services

This Business Scenario Map is designed to show you how salary survey providers use the business Internet to provide salary benchmarking information which can be accessed by employers who compare their internal salary data directly with market data. The map illustrates the benefits of collaboration. Up-to-date information is provided. Customer satisfaction is increased. The result is a streamlined business process that saves time and money.
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Value Potentials Business Benefits
Save between 1 and 1 1/2 times annual salary plus benefits per successfully retained employee * Reduce staff turnover costs
Sub-optimized payroll costs can have as much as 25 % negative impact on profits ** Improve management & optimization of existing resources
One percentage point decrease in turnover can add 5% to profit ** Increased profit
Save between 1 and 5 days per data request, compared with traditional (manual) process ** Increase time savings
Faster decision making
Up to 25 % discount for buying electronic data ** Cost advantage
Employer
Salary Survey Provider
Request for salary benchmark information
Evaluation of salary benchmark information
Supply of salary benchmark information
.
Source:

* Saratoga Institute

** Hay Group and interviews with customers
The value potentials shown in this table have been reported by selected SAP customers or independent third parties as referenced herein. However, there is no guarantee that such value potentials can be realized in any particular customer-specific business processes, and SAP does not make any representations and disclaims any liability as to the appropriateness of the referenced value potentials for any specific customer situation.
©SAP AG 2008
Business Benefits Value Potentials
Increased customer satisfaction
Expanded market channels
Operating cost savings
 

Salary Benchmarking Services

Comparison of market pay data is the most important input for defining a company's compensation strategy. Today, most companies buy market pay information from numerous different sources, such as Hay Group, Mercer, and Wattson Wyatt.

 

Companies participate in salary surveys because:

 

  1. They want to compare their own pay structure with competitors or companies in a similar line of business
  2. Analysis of benchmark data is a prerequisite for a competitive compensation policy
  3. They want to attract, motivate and retain their employees

The Salary Benchmarking Services' functions enable companies to connect via the Internet to the salary survey providers' databases, and compare their internal salary data directly with market data.