Do you need help attracting qualified candidates at competitive salaries? As an HR leader, understanding the salary data of your industry can be one of the most important steps you can take toward establishing an effective recruitment and compensation program.
Using up-to-date salary market research will give you accurate insights into local talent markets, key job roles, and kinds of pay packages that will entice experienced potential hires. Today’s blog post will explore why having access to relevant salary information is critical for successful recruitment. Let's get started!
Salary Data Overview
Salary data is imperative when making informed decisions regarding recruitment and compensation. Salary information is tracked through various sources, including LinkedIn, recruitment agencies, salary surveys, and other market research. This data helps talent leaders understand the going rate for positions in their local markets and the conditions most attractive to potential candidates.
According to CNN, a new law in New York City requires employers to include a salary range on job listings, and more states may soon follow suit.
By understanding how specific salaries compare to others in the same industry, talent leaders can create better-informed offers for new hires and ensure that current employees receive wages that remain competitive with industry standards.
Salary Data Ripple Effects
Salary data guides talent leaders in making more informed decisions about how pay is structured and distributed within an organization. Talent teams may rely on the data collected from recruiting activities to identify and respond to changing trends in compensation, such as location-based discrepancies or unexpected differences between industries or levels of seniority. It can also be used to develop incentives and reward programs that help meet organizational goals while encouraging staff retention at the same time.
Horsefly’s Talent Analytics Survey results indicated that an overwhelming majority (60.87%) of talent leaders leverage data on average salaries in their workflows.
Focusing on salary data can help employers accurately gauge the current market rate for any position and ensure they are competitive when recruiting new team members. Furthermore, this data can set internal salary ranges and provide existing employees with salary increases to keep up with industry standards.
More Informed Decisions Now & Later
Salary data impacts a company’s ability to attract top talent, retain existing team members, drive business objectives, and stay competitively priced within its industry or geographic area. Talent teams must keep abreast of industry developments to remain up-to-date with the latest market conditions and negotiate fair offers with prospective candidates. By leveraging accurate salary information and insights specific to their organization’s objectives, talent leaders can effectively assess their current compensation landscape while making informed decisions about future pay structures.
Additionally, the analysis of salary data can help organizations monitor wage growth over time understand discrepancies between pay grades, and identify potential issues like unequal pay for the same role across genders. As such, it’s clear that access to average salary data is critical for making informed decisions about compensation strategies across an entire organization. Salary data can also compare job roles across countries and regions to ensure an equitable pay scale between employees at different locations. This can be especially helpful in cases where there is a need for remote work or hiring from a global pool of candidates.
Wage Transparency Prevails Globally
Horsefly’s Talent Analytics Survey results showed that nearly half of all talent leaders (49.24%) publish expected salary information on job postings. The majority (74.24%) also reported using salary/compensation data to help with employee retention and benchmarking. With this data, it is evident that many organizations recognize the importance of offering competitive salaries for their positions to remain attractive in a competitive talent market.
The trend towards more transparent salary expectations has been growing over the last several years as organizations look for ways to attract and retain top talent. Offering competitive pay can also be instrumental in helping employers build trust among their employees and maintain team morale by ensuring all staff is fairly compensated for their work. Employers understand that having a robust compensation model is essential in creating a healthy work environment and driving productivity within their teams.
In addition, using salary/compensation data when considering employee retention efforts has become increasingly popular as companies strive to keep their best staff members around longer by rewarding them appropriately. If employees feel like they're being fairly compensated based on market trends, they will be far more likely to stay with an organization long-term.
Fair & Transparent Compensation
Most organizations are placing a higher emphasis on providing fair salaries and compensation packages to attract and retain top talents while motivating current employees through rewards tied directly to performance or tenure at the organization.
Horsefly’s Talent Analytics Survey results suggest that companies view fair and transparent compensation practices as essential to building a positive organizational culture and overall employee engagement. More organizations publishing expected salaries on job postings could lead to decreased wage disparities between men and women and other protected classes in specific industries and regions.
Additionally, providing salary benchmarking helps strengthen trust between management and employees through transparency in compensation practices. Check out Horsefly’s Talent Analytics Survey to learn more about the shift towards more equitable pay practices for talent leaders worldwide.
It’s clear that having access to timely and accurate data is essential for talent leaders who want to stay ahead of the competition. Horsefly’s Talent Analytics Survey results provide an invaluable source of intelligence when considering workforce planning, recruitment processes, and internal mobility strategies.
Equipped with this information, talent professionals can use insights to improve their organizations’ performance and better manage their human capital resources. To get the full Talent Analytics Survey results, download the ebook now!