Lately when doing market benchmarking I’ve sometimes heard the comment “I can get an X (Accountant/ Project Manager, etc) for less than the market package benchmarks you are showing me here”. It’s worth commenting on this.
The statement is of course true: there are always individuals whose services can be obtained for less than the “going rate”. The reasons are almost endless, and include:
· Those who are unemployed and urgently seeking employment;
· Those who are unaware of their true market worth;
· Those who are attracted by the reputation/image of the company or its proximity to their home;
· Those who are relatively independent financially and do not need a high package from their employer; etc.
However the purpose of market benchmarking is to establish the middle of the market (and the spread on either side of this midpoint) to obtain the most balanced view of an individual’s package relative to market.
In effect organisations need to pay their employees the packages for which those employees are prepared to work; this is a separate issue from market benchmarking. And often this “deal” (the accord struck between employer and employee regarding the package for which the employee is prepared to offer their services) works, sometimes for a long time. Just remember that eventually people do come to understand their true market worth and can end up leaving for greener pastures.
In essence it’s a risk management issue: the more you pay someone below their market worth, the more you are exposing yourself to the risk of the employee leaving for package reasons. Assessment of the degree of risk of losing specific individuals is key to this whole risk management process: some people create a bigger void on leaving the company than others.
17 Comments
I am in a Hotel Maintenance Industry and majority of my men are handy men with all individual skill. what is the benchmark salary for these men
hello what is the market related salary for a Regional Sales Operations Manager
Hi i do up and download for a company in the security industry, what is a approxmaite salary bracket, your comment will be most valuable to me
Thank you
Hi there! have been offered a sales/marketing management position for a large company in Johannesburg. This is a direct marketing company and I have 23 years’ experience in this field, along with a degree in marketing. Could you please advise? I ran my own company (direct marketing) for 13 years, so I have extensive knowledge of the field. The company is extremely keen, but I do not want to price myself out of the position. Many, many thanks. Shay-Lea.
What is the market related salary for a legal teamleader?
Please can someone tell me what the market related salary is for a Buiness Development rep it?
I cant find it anywhere.
please????
thanks
Shari
Hi,
Please can someone tell me what the market related salary is for a cashbook & creditors clerk?
Please help need it urgently
tahnks
Saafiyyah
Hi I’ve been offered a position of a PA and they said the salary is market related. I havent been working so Im not to sure of the PA’s marketed related salary. Please help!!!
Thanks
Vumile
Hi, i would like to know stock controller market related salary
please help
Market benchmarking is in most cases a relatively-complex matter requiring a fair amount of explanation to provide proper context. We do not provide individuals with this information because of the amount of input and time needed to do this benchmarking accurately. The input we need is for example location, industry, company size, size of region, reporting structure (i.e. what job does this one report to), number of subordinates (if any) and their job titles, job responsibilities (as would be contained in a job description or role outline) and target year (e.g. for today, for a pay year from May 2011 to April 2012, etc). The time needed is normally around an hour on an individual basis, and this time is currently billed at R900/hour + VAT. This is why it is companies not individuals who normally request this type of information. We at HR Advice look forward to being of service to you in other areas wherever possible.
Please advise, what is the market related salary for Bookkeepers? I have 3 years experience in Accounting.
I would like to know what the market related salaryu is for a PA to a Managing Director, they deal with personal asp[ects of the MD as well as staff salaries and oher confidetial information. They have a National Diploma and have been working for the company for 4 years.
Hi
I would like to know the market related salary for a grade control geologist.
Hi,
Could you please tell me what the market related salary is for a Graphic Designer with 10 years experience.
please help,what is the market related salary for senior creditors clerk.
hi
i have been offered a job as a PA to the MD to some international company and have 4 yrs experience so i would like to knw market relate salary for PAs
i am a Salvage claims assistant for a large insurance company, with 2 years experience, what is the market related salary i should expect?