Remuneration Benchmarking

What Is Remuneration Benchmarking? 
Remuneration benchmarking is a two-stage project that involves a HewittCSi consultant matching your organisation's positions to generic job roles in the market and then comparing the differences in salaries and benefits paid.

Why Do Remuneration Benchmarking? 
Remuneration benchmarking can assist you to gain a clear understanding of your organisation's market position and the competitiveness of employees' remuneration packages. It identifies situations where particular employees are paid far more or far less than market rates for their job roles.

Benefits Of Remuneration Benchmarking 
Armed with the results of a remuneration benchmarking project, you can cost and build remuneration strategies to move your organisation to a market competitive position and towards a more focused, targeted approach to remuneration management. This will contribute to business profitability and assist with attracting, retaining and motivating talented employees.

Format Of Results 
A Hewitt CSi remuneration benchmarking report typically features:

• A list of your employees together with their assigned market job role
• Your employees' remuneration alongside market remuneration data
• The % differential between what your employees are being paid and what the market is paying for their job roles
• The functionality to view your employees' remuneration against market data at various percentiles
• Summaries of your organisation's market positioning by one, some or all of the following categories:

-  Job family, business unit, department or division
-  Job level
-  Team
-  Geography/location
• Other analyses and summaries of results as requested.

Hewitt CSi's Methodology  
Remuneration benchmarking projects typically include the following steps:

• Project planning/information gathering: during this project phase, the exact number of job roles and employees or departments/divisions to be benchmarked is agreed upon. Your organisation's target market and target reference point ('remuneration benchmark') is also defined. In addition, you will need to provide your organisation's job descriptions, organisation chart, salary grades/banding information, current payroll data and/or any other relevant details to Hewitt CSi. There will be a discussion regarding how the remuneration benchmarking project fits into your organisation's human resources and business strategies.
• Completion of job matching utilising position descriptions and clarification interviews: during this project phase, Hewitt CSi's consultants will review your organisation's position description and match them to generic job roles in the market. Where necessary, Hewitt CSi's consultants will interview members of your management team or specific individuals within your organisation to ensure that the best possible matches to the market are achieved.
• Formulation of remuneration benchmarking report: during this project phase, Hewitt CSi will formulate an MS Excel 'Remuneration Benchmarking Report'. This report will allow you to clearly see the areas where remuneration for particular employees, roles and job families or departments exceeds or falls behind market rates. Please refer to Format Of Results for further detail.
• Presentation of the project results: this project phase is optional. You may wish to invite your Hewitt CSi consultant to present the results of the project to your CEO or senior management team or to particular departments within your organisation. Typically, a MS PowerPoint presentation is formulated, outlining the key findings of the remuneration benchmarking project and the implications of these findings for your organisation.

Timeframe 
The length of a remuneration benchmarking project is typically 2 - 4 weeks, but will vary according to a number of factors, including:

• The number of employees within your organisation
• The number of individual positions within your organisation that need to be matched to generic job roles in the market
• The amount of detail presented in your organisation's position descriptions. In cases where position descriptions lack the information required for accurate benchmarking, Hewitt CSi's consultants may need to conduct interviews to complete the job matching process and this usually extends the length of a project
• The availability of managers and/or other employees where clarification interviews need to be conducted
• The speed at which your organisation's position descriptions and remuneration information can be provided to Hewitt CSi, including your organisation's job descriptions, organisation chart, salary grades/banding information, current payroll data and/or any other relevant details.

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