Remuneration studies
Remuneration studies
Remuneration studies are essential for having have well-rewarded staff.
The Human Resources department of any company must be committed to its employees, conducting effective remuneration studies in which employees feel they are paid what they deserve for their position compared to their colleagues. For this, Melt Group has a team with expertise in carrying out remuneration studies that enable managers to have adequate information when hiring.
One of our top priorities is studying the salary ranges of our clients and carefully analysing the market in which we operate. At our Human Resources Consultancy we all the tools needed to do this.
The aim of carrying out this type of remuneration studies is twofold: on the one hand, they allow the organisation to make decisions about salary range and, on the other hand, it improves the company’s working environment. The key factor is to check market reference points so as not to fall behind in salary matters.
The remuneration study requires us to collect specific data, both internally and externally. Within the company we can analyse if the remuneration programmes are effective. Studying the market helps us review sector remuneration practices and detect problems related to remuneration.
Advantages of remuneration studies
- They provide information about remuneration requirements within the business sector.
- They help us to effectively diagnose salary-related problems.
- They determine the areas and groups that should take part in remuneration surveys.
- They establish an analysis of the jobs where the company must adopt new measures or study remuneration in the market.
- They help make sector comparisons.
- They are essential for putting information needs on the table.
- Remuneration studies are essential to enable the company management team to have first-hand knowledge of the salary needs within the sector, so they can improve decision-making and implement new measures.
Multisector or ad hoc remuneration studies
Depending on the specific needs of each company, remuneration studies may be customised or generic. In the case of business groups, opting for generic analysis is a great idea. However, some companies need to go further in the study of remuneration. For them, Melt Group designs each analysis in a comprehensive and personalised way.
The remuneration study requires experience on the part of the team in charge of carrying it out. This is crucial, as it is essential to make a careful study of what the market offers in this regard and determine sector needs. It is not, therefore, a matter of making simple salary comparisons, we have to go much further and carry out a high-quality analytical and documentary task.
It’s very important to know how to interpret remuneration studies, in order to get the most out of them. Decision-making and the implementation of new economic measures within the company depend, to a great extent, on this.
What is the remuneration study for?
In the Human Resources sector, the remuneration study has a number of purposes:
- It allows us to assess the company’s growth expectations, as well as to optimise forecasts and put different organisational objectives on the table.
- It provides substantial information on the salary band for different jobs within the same business sector.
- A good remuneration study and the implementation of the necessary measures is a key factor in the search for talent.
- It improves the personnel selection and recruitment processes.
- It prevents talent draining from the organisation.
- It enables companies to know their competitors’ salary ranges and check if they are in line with the job market.
- For the company, having these reports is a priority for developing mandatory equality plans.
Remuneration studies: the salary band
To correctly establish the salary band within an organisation, it is extremely important to have a perfect understanding of the job market. This means that wages and salaries can be defined objectively, which will serve to recruit talent from much more motivated candidates.
The salary band is the range of remuneration established between the different jobs within a company. Ranking different job profiles is crucial for setting the salary band. Basically, it involves setting a minimum and maximum salary in each of the hierarchies. Obviously, the starting-point is the minimum wage set by the law in each country.
We then have to carefully analyse the sector, in order to assess what range of figures we should be moving in. This provides us with quality information about the expectations of professionals working in each activity. This is undoubtedly an important requirement for HR managers.
The salary band is the remuneration range in which salaries move within the same job level within an organisation. Setting a figure that fits the job market is essential for maintaining staff motivation and retaining talent. All this will ultimately increase productivity, the job climate and the benefits for the organisation.
How do we establish the salary band?
The market: one of our priorities is a thorough investigation of the market. In the remuneration studies we carry out at Melt Group, we analyse salaries (fixed part + variable part) of profiles similar to those of our clients’ companies.
Employees: knowing your employees, their posts, abilities, knowledge and skills is key to setting the salary band for each position.
Economy: each organisation needs to adjust the salary band to its own economic situation in order to make a profit. The remuneration study must also reflect the maximum figures that the company is able to take on.
Emotional salary: this is a key concept in Human Resources. The idea is to supplement employees’ monetary salary with other types of benefits, such as improving work-life balance, favouring access to teleworking, making hours more flexible, etc.
Salary: fixed part + variable part
The salary or wage is the remuneration that every employee receives in exchange for their work. This varies considerably, depending on the type of company, the staff job agreement, the prior negotiation, the position held and other issues.
As a general rule, salaries are made up of a fixed part and a variable part. In addition, flexible remuneration and other forms of social benefits are included in the salary.
- Fixed salary: this is the basic amount offered to the employee for his or her work relationship with the company. This amount is always the same, that is, it does not undergo variations. This means it is independent of whether the employee meets their targets or not.
- Variable salary: this is a fundamental part of the salary for many employees. It is designed to motivate employees, as any increases are linked to achieving targets and objectives. If the flexible remuneration is added to the fixed and variable part of the employee’s salary, the employee’s emotional salary is obtained.
This is a perfect formula for improving employee perception, making staff feel much more valued by the organisation to which they belong.
What is flexible remuneration?
Flexible remuneration plans can be adopted as part of remuneration studies. This allows companies to increase their employee remuneration while avoiding an increase in salary costs. We can define flexible remuneration as payment in kind. The employee will receive his or her salary as usual, but will obtain other remuneration in kind.
These payments could be the famous restaurant vouchers, the company car, the worker’s house or payment of other services, such as schools for children or gym membership, for example.
Advantages of flexible remuneration:
- Flexible salaries attract talent to the company.
- Builds loyalty and avoids the talent drain.
- Increases productivity because of employee loyalty.
- Does not increase salary costs.
- The employee will see their taxes reduced.
- Flexible remuneration increases economic savings for employees.
- Promotes work-life balance.
How can we help?
At Melt Group we help you implement flexible remuneration plans through our detailed remuneration studies. To do this, we set the objectives to be achieved, we study your employees and design the action plan taking your business requirements into account.
Entrust us with a mission
Location
Av. del Marqués de Sotelo, 1, puerta 6, 46002 Valencia
Contact
Teléfono : + 34 963 919 661
Email : info@meltgroup.com
