Job matching is a critical aspect of conducting a salary survey. It refers to the process of
comparing job roles within an organisation to similar roles in the external market to determine
appropriate salary levels. According to WorldatWork, job matching is the foundation of a salary
survey and enables remuneration practitioners to make accurate and fair salary comparisons
(2010).
Job matching is essential because it allows for correct comparisons to be made between the
jobs on the salary survey and the jobs within an organisation. This is important as it ensures
that salaries are set at a level that is fair and competitive within the industry. Comparing jobs
with similar responsibilities and requirements in other organisations ensures that the
remuneration packages being offered are market-related and attractive to potential
candidates.
Furthermore, the comparators used in job matching should be organisations that are similar
in size and complexity. As noted by Milkovich, Newman, and Gerhart (2014), companies that
are different in size, structure, or industry may have different job roles or responsibilities,
making it difficult to accurately compare salaries.
When choosing comparator organisations for a salary survey, it is essential to consider factors
such as industry, location, and company size. According to Heneman and Judge (2015), the
most effective comparator organisations are those that are similar in terms of job roles and
organisational structure. This allows for more accurate comparisons of salaries and benefits.
One approach to choosing comparator organisations is to use professional salary survey
providers, who can help identify suitable comparators based on their extensive database of
information about other organisations in your industry and location. These providers can offer
industry-specific data, which can be particularly useful in making accurate comparisons.
Another approach is to use industry reports, such as those provided by trade associations or
government agencies, to identify organisations that are similar to your own. This can be
particularly useful for smaller companies that may not have the resources to use professional
salary survey providers.
It is also important to ensure that the comparator organisations are geographically close to
your own organisation, as this can affect salaries and benefits due to regional differences in
the cost of living. As noted by Heneman and Judge (2015), it is important to select comparators
that are within the same labor market.
Conclusion
In conclusion, job matching is the most important component of a salary survey as it enables
remuneration practitioners to make accurate comparisons between the jobs in their
organisation and those in the external market. By choosing comparator organisations that are
similar in size and complexity, remuneration practitioners can ensure that their salary survey
accurately reflects the competitive landscape for their organisation's job roles. When choosing
comparator organisations for a salary survey, it is crucial to consider industry, location, and
company size, as well as job roles and organisational structure. Professional salary survey
providers and industry reports can be useful in identifying suitable comparators, and it is
important to select comparators that are geographically close and within the same labor
market.
Reference
Heneman, R. L., & Judge, T. A. (2015). Staffing organisations. McGraw Hill Higher Education.
WorldatWork. (2010). Conducting a successful compensation survey: A step-by-step guide.
Scottsdale, AZ: WorldatWork.
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation. McGraw-Hill Education.