How data plays into attracting and retaining employees

Organizations that invest in annual salary surveys gain critical insights about competitive compensation, which is the key to attracting, retaining, and motivating employees. Without the benefit of salary surveys, you risk making reactive and costly pay decisions for both new hires and existing employees. Beyond that, in today’s environment of pay transparency and equity, the importance of salary surveys is immeasurable.

Attraction starts with competitive pay

The most important question candidates have when it comes to applying for a job is, “What pay and benefits are you offering?”

If your answer to that question doesn’t meet the candidate’s baseline expectations, there’s no real point in continuing the conversation.

Now, in the era of pay transparency, you need to include at least the high-level details of the pay package upfront, in the job posting. If you’re not willing to include at least a salary range in your job posting, you’ll probably need to limit your expectations on who will apply. In the recently released Inside Employees’ Minds, Mercer learned that 44% of employees say they will not apply to a job without knowing the pay upfront. If you’re looking for top talent, they’re less likely to consider a job posting that doesn’t indicate pay.

Motivation and satisfaction rely on data-driven decisions

Current employees are having more discussions about their own pay and what they consider acceptable and fair or unacceptable. Little can damage an employee’s engagement quicker than the perception that their pay is too low or unfair compared to that of their peers. Sixty-eight percent of employees say they know their pay range despite only 1 in 4 employers openly communicating that information. That’s a clear indicator that the stigma around discussing pay with colleagues is a thing of the past.

With any sizeable population of employees, meaning more than three or four people who have the same job title, you must have tools to support that you pay equitably and competitively. The foundation for that tool kit is trusted, reliable salary surveys.

To manage pay with intent and strategy, rather than with knee-jerk reactions, you need to purchase salary surveys annually. The annual survey data will underpin your pay structure and ranges, allowing you to manage pay equitably.

Pay mix and opportunity are directly linked to your employees’ motivation to perform. Salary surveys provide you not only with base pay, but also incentive eligibility, targets, and payouts. This allows you to understand the percentage of pay at risk that can be used to drive performance.

Retention depends on fairness and transparency

Your annual purchase of salary surveys demonstrates to your managers and employees that you are committed to making sure pay is competitive and fair. You can be transparent about the process you use to set pay and the role salary surveys play in that process. It’s much more challenging to build trust with managers in your compensation management if you have to admit to using old data.

More findings from Inside Employees’ Minds back up the importance of purchasing annual salary surveys:

• Employees who believe they are paid fairly are twice as likely to say their employer provides pay ranges or they understand how their compensation is determined.
• These same employees are also 62% more committed.

Of course, there are other things that will determine whether an employee stays or chooses to leave, but a culture of trust, fairness, and transparency certainly goes a long way.

Salary survey participation is key

There are multiple salary survey companies, including Mercer, that collect information on compensation strategies and other total rewards practices from businesses. While it’s possible to simply purchase access to this data, by submitting your data to salary surveys you will save money. In fact, by participating in the survey prior to purchasing, you will typically save 50% or more on the price of the survey!

It goes beyond a cost savings, however. Participating in salary surveys gives your organization a voice and the opportunity to influence the survey methodology and scope. Including your most recent and relevant data improves the quality and usefulness of the survey results for your organization. In addition, by participating the surveys, you will be able to easily isolate the survey’s jobs you have matched to and efficiently compare your employee pay to the survey data.

When participating in Mercer surveys, we provide support and direction along the way. When the time comes to submit your data, Mercer Data Connector simplifies the process for you, facilitates global collaboration, and ensures data accuracy with AI-powered algorithms.

Mercer has the data and insights you need

At Mercer, we take pride in our commitment to providing a vast array of total rewards data supported by efficient data submission practices and a world-class team of consultants.

Mercer’s real-world salary data is submitted by compensation people, managed by compensation people, and reported by compensation people. When you have questions, we have a team of people who have deep experience with salary surveys and compensation management ready to help. We are also committed to continuous improvement — listening to the needs of our customers, anticipating the changes in the market, and striving to innovate for the better.

With an experienced staff, we are able to spot and work through data complexities that will maximize both the validity and quality of the data. If significant discrepancies are noted, we bring back in the organization that submitted the data and work collaboratively to ensure the best data is included in our survey. To us, this is critical to delivering quality salary surveys.

You can rely on Mercer to publish the best salary surveys and compensation planning information that you need on a predictable schedule. Knowing when you will have access to data will help you establish your annual activity/project calendar as well as set and meet deadlines.

Get the salary surveys you need today

Whether you are new to the world of compensation and salary surveys or just need another set of eyes to work through your survey purchasing decisions, we’re here to help. Regardless of your industry, business maturity, or location, Mercer has quality data and advisory services to support your organization’s talent strategy.

Contact us at 855-286-5302 or email surveys@mercer.com.