What are the best sources and methods for conducting a salary survey in your industry?

1 Why conduct a salary survey?

A salary survey is a systematic collection and analysis of data on the wages and benefits of employees in a specific industry, region, or occupation. By conducting a salary survey, you can gain insights into how your organization compares to others in terms of pay levels, pay structures, pay equity, and pay trends. You can also use the survey results to design or revise your compensation plan, align it with your business objectives, and communicate it to your employees and stakeholders.

2 How to define the scope and coverage of your survey?

Before you start collecting data, you need to define the scope and coverage of your survey, which means deciding what jobs, locations, and organizations you want to include in your analysis. The scope and coverage of your survey should reflect your industry characteristics, your target market, and your competitive position. For example, if you operate in a niche or specialized industry, you may want to narrow down your survey to similar organizations or roles. If you operate in a broad or diverse industry, you may want to segment your survey by sub-industry, size, or geography.

3 How to choose the sources of your data?

There are two main sources of data for salary surveys: primary and secondary. Primary data refers to the data that you collect directly from other organizations or employees, either through surveys, interviews, or focus groups. Secondary data refers to the data that you obtain from existing sources, such as published reports, databases, or websites. The advantages of primary data are that they are more accurate, current, and tailored to your needs. The disadvantages are that they are more costly, time-consuming, and difficult to obtain. The advantages of secondary data are that they are more accessible, affordable, and comprehensive. The disadvantages are that they may be outdated, inconsistent, or irrelevant to your situation.

4 How to collect and analyze your data?

Once you have chosen your sources of data, you need to collect and analyze them in a systematic and reliable way. You can use various tools and methods, such as online surveys, questionnaires, spreadsheets, software, or consultants. The key steps for collecting and analyzing your data include designing your survey instrument or questionnaire, selecting a sample or population that represents the scope and coverage of your survey, administering the survey or collecting the data ethically and legally, cleaning and organizing the data to eliminate errors or outliers, and analyzing and interpreting the data using appropriate statistical techniques. Drawing meaningful conclusions and recommendations from your data is also essential.

5 How to report and communicate your findings?

The final step of conducting a salary survey is to report and communicate the findings to your audience, which may include management, employees, or external stakeholders. You can utilize various formats and channels, such as reports, presentations, dashboards, or newsletters. It is essential to summarize the main results and insights, emphasizing the key trends, comparisons, and gaps in compensation across your industry, region, or occupation. You should also explain the implications and applications of the results and provide recommendations and action plans for designing or revising your compensation plan. Additionally, you should solicit feedback and evaluation from your audience to measure the impact of your salary survey.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?