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FIVE STEPS TO BENCHMARK YOUR COMPANY’S COMPENSATION AND BENEFITS

Written by Bianca Valencia on March 11, 2021. Posted in Resources.

In human resources, salary benchmarking serves many critical needs. It helps organizations assess the competitiveness of their total compensation versus the market, and is an important step in managing your human resources program. When organizations look to introduce new positions, salary benchmarking ensures a good understanding of the prevailing market conditions.

Here’s a short checklist – five steps – to follow for your next benchmarking exercise:

Start with a High-Quality Survey

To do any benchmarking, you need market data, and that market data comes in the form of a survey. The foundation to any market survey is its job matching approach. The job matching exercise ensures that jobs of similar levels of complexity are benchmarked against each other to establish common value across the market.

It’s important to understand the methodology for job matching used by the survey provider and how the process is managed. Are clients responsible for job matching, or does the consultant take the lead?

In Birches Group’s Community™ Market surveys, our survey specialists perform the job matching on behalf of every client, ensuring consistency and high-quality.

We use a job matching methodology that is simple, clear, and consistent, based on our Community™ Jobs evaluation approach. Community™ Jobs considers three factors – Purpose, Engagement, and Delivery.

Purpose enables us to examine each role within the organization and determine its primary objectives and how it supports the overall mission of the organization. Engagement identifies how each job interacts and collaborates with internal and external stakeholders to carry out its function. Delivery examines how each role plans, organizes and delivers work to fulfill the organization’s mission.

These three factors are present in any job, at any level. And together, they allow us to understand how an organization conducts business across all levels of work, starting with defining the purpose of its jobs, determining their level of engagement, and examining how each of its roles organizes and delivers service.

2. Focus on Grade Data

Many salary surveys take pride in the number of specific jobs captured in their surveys, but this is really a questionable practice. Most organizations use generic pay bands and set pay ranges for all jobs at a particular level across all occupations. Jobs with the same internal grade are paid in the same pay range, so the differences measured in the survey between different jobs are based not on job characteristics at all, but personal ones, like performance or tenure. Job data is also easily affected by the number of incumbents matched to a particular role, giving an illusion of precise differences based on volatile data of questionable value. The differences reported in the survey by job are misleading.

When benchmarking your salaries, we believe that organizations should focus on grade data. Grade data is based on the job level and the associated ranges, and not the actual people sitting in those jobs. It’s a more reliable analysis because grade data captures all jobs with the same contribution level to an organization. Grade data is a more stable representation of actual market movement versus incumbent salaries, which is highly variable.

3. Know Your Target Market

Before making your assessment, it is important that you select the survey comparators that are relevant to your organization. Out of the bigger survey sample, you will need to choose a smaller group of comparators relevant for your organization.

Market surveys can have twenty to over a hundred participants, or even more. But it does not necessarily mean that you compete with each one of them. If you are unsure where to begin with your selection, the criteria below are great places to start:

Organizations working in the same/similar sectors;
Those which you have lost staff to/hired staff from;
and Organizations in the same geographic area.

You should also consider comparator organizations which share a similar Employee Value Proposition (EVP). Each company’s EVP is different, but look for organizations that have similar mission, approaches to career development, or pay and benefits philosophies similar to your own organization.

4. Identify Your Market Position

Once you have narrowed down the selection to your chosen comparators, the next step is to identify which level or percentile of the sample you want to target. But before making that decision, you will need to go back to your company’s EVP. Your EVP for total rewards should state your organization’s objective for competitive market position.

Organizations typically state their target market position as a percentile of the targeted comparator group. A position versus the 50^th percentile or median of the market is common; going higher or lower is OK, too – it depends on what talent market you are trying to reach.

Being competitive is not always just about salaries. Allowances and benefits – monetary and non-monetary – can also be used to attract and retain talent. In our own experience, we have encountered companies that choose to position their salaries a bit lower in the market range but offer additional benefits on top of market practice. Again, depending on your company’s EVP, its all about striking that balance.

5. Always Use Fresh Data

If you are responsible for managing your company’s compensation and benefits, one concern that you might have is making sure that you are working with the most updated market information. Companies that have solid compensation policies will still struggle to maintain their competitiveness in the market if they are working with outdated information.

In Birches Group, we recognize that not all organizations update salaries at the same time every year or apply the same frequency between salary reviews. We know that organizations choose to participate in salary surveys when it makes sense for them. Our surveys are evergreen, with the opportunity to participate when it makes the most sense for you, and multiple publication dates.

Our Community™ Market salary surveys are updated three times a year, every April, July, and October. This ensures that we always have the freshest data in our surveys and that any change to your compensation and benefits can easily be captured anytime during the year. Our evergreen approach also allows us to grow our survey sample throughout the year, providing our participants with the most robust data possible.

Birches Group provides labor market information for over 150 countries around the world. Our compensation and benefits surveys cover a full range of professional and support levels, providing information that ensures a client’s pay practices are aligned with the market conditions of leading employers in each country. Contact us to learn more.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz to know your score!

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

PAY FOR PERFORMANCE – HR’S BIGGEST EPIC FAIL

Written by Bianca Valencia on March 11, 2021. Posted in Resources.

Recognizing and rewarding employees for their contributions is required to motivate and retain staff. But “Pay for Performance” as we know it just doesn’t work!

For the longest time, companies have used performance ratings to decide merit pay increases and sometimes, annual incentives. Typically, merit increases are determined according to a combination of performance ratings and position in range (compa-ratio) – those with a combination of higher performance ratings and lower compa-ratios are eligible for higher increases, while those with lower ratings and higher compa-ratios get less. The idea is that such an approach provides a differentiated reward to those with better performance, while ensuring that, on average, the company is paying at the market rate (compa-ratio of 100).

The level of differentiation between strong performers and good ones isn’t much with annual salary budgets of 3% or less in many countries. Employees don’t get excited about getting an increase of 3.2% instead of 2.9%. It’s not really motivating, and does little for retention, which are the two primary goals. Not to mention employees and managers probably hate your performance management system and do not trust the results are fair.

What’s Wrong with Pay for Performance?

Putting aside that last thought, and assuming your performance management approach is working well and is perceived by management and staff to be fair and effective, the problem with pay for performance is one of alignment. Pay for performance rewards a one-time achievement (as measured by the annual performance rating) with a salary increase forever. That’s a huge misalignment!

Merit increases are essentially “baked in” and will remain a part of salary until the employee leaves the organization. On the other hand, performance is variable, and usually changes from year to year. If an employee is a high performer one year, and gets a “high” merit increase, and then in the next year, their performance is lower, how much do they give back? Yeah, right. The penalty for lower performance is a smaller increase going forward.

Using annual performance assessment to determine salary increases is crazy.

Alignment is Key

To align your pay for performance strategy, the first thing you need to change is the role performance management plays in determining rewards. Birches Group believes performance management, which measures periodic, time-bound achievements, should be used to grant one-time recognition such as bonuses. When performance is higher, bonuses go up. If performance drops, bonuses go down, sometimes to zero. You should do something else for salary movement. But what?

Using Skills to Recognize Growth

In Birches Group, we believe that pay movement should reflect one’s experience. As an employee gains more experience in their job over time, they develop a deeper understanding of their role and accumulate the necessary skills that enable them to be more efficient and produce results of increasing quality. Linking an employee’s growth in skills and knowledge to the determination of their salary movement makes sense, and it’s totally aligned. The accumulation of skills and knowledge stays with your employees and can be applied continuously in the future. Skills are like an annuity that keeps paying over and over – like salary! The challenge with such an approach has always been how to measure skills and knowledge. Until now.

Birches Group Community™ Skills provides a framework for measuring experience. Skills uses five skill levels – Basic, Proficient, Skilled, Advanced, Expert – anchored to our job levels. For each job level, explicit measures or milestones are defined, enabling managers to evaluate employees’ accumulated skills and knowledge. Companies can link their compensation administration to the progression of Skills in any number of ways, and provide increases based on employee growth in their jobs rather than performance.

The New Pay for Performance

Employee’s should be recognized for both the growth they demonstrate in their job and their achievement during a performance period. By structuring your pay for performance philosophy using two concepts instead of just one, you can solve the alignment issue and create a pay for performance program that works.

If an organization’s goal is to motivate and engage their staff, the approach must be clear and fair. By linking salary movement to growth in skills and knowledge, you will be paying for increased capacity, while also recognizing achievement. Contact us to learn more about our Community™ approach to recognition and reward.

SALARY SCALE CASE STUDY: INTERNATIONAL POTATO CENTER (CIP)

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

The International Potato Center (commonly known as CIP) is part of the CGIAR consortium of research centers dedicated to agricultural research and food security. With headquarters in Lima, Peru, and country offices in 20 developing countries, CIP was facing stiff competition for talent and other issues with their pay structure. CIP engaged Birches Group to help revamp their compensation strategy and local pay structures, while still maintaining a linkage to the other CGIAR centers, all of which participate in Birches Group surveys.

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SALARY SCALE CASE STUDY: RIGHT TO PLAY

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

Right To Play, headquartered in Toronto, Canada, was experiencing challenges in attracting and retaining talent for their programs in more than 20 developing countries around the world. Their compensation system was still based on a cost of living approach, rather than cost of labor. Internal job grading had been developed, and the focus shifted to salary structures. Right To Play was a long-time participant in the NGO Local Pay surveys and agreed to partner with Birches Group to implement the “Pay Right Project.”

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SALARY SCALE CASE STUDY: INSTITUTE OF INTERNATIONAL EDUCATION (IIE)

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

The Institute of International Education developed a strong, market-driven approach to compensation for their field offices, including salary structures and a consistent grading system. But they lacked the internal resources to maintain the structures across a very diverse group of countries. They faced additional challenges in selected markets due to economic volatility, and the response time from headquarters HR was slow. IIE engaged Birches Group to assist in maintaining the salary structures and to guide the organization towards a policy-driven approach for special measures.

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SALARY SCALE CASE STUDY: ELIZABETH GLASER PEDIATRIC AIDS FOUNDATION (EGPAF)

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

The Elizabeth Glaser Pediatric AIDS Foundation was seeking assistance with the management of their compensation program. Prior to engaging Birches Group, they centralized the responsibilities for pay management at headquarters and created salary structures. But the team recognized the need for professional guidance and expertise, choosing a co-sourcing arrangement with Birches Group.

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A close-up of various international coins and banknotes scattered in a disorganized manner.

MANAGING COMPENSATION WHEN UNCONTROLLABLE EVENTS OCCUR

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

Lately, we have been receiving a lot of inquires from clients about how to best manage compensation in high-inflation countries, including Ghana, South Sudan, Zambia, Argentina, Venezuela, Kazakhstan, etc. (to name a few!). This post shares our guidance about managing compensation when uncontrollable events, like hyper-inflation, impact the labor market.

What are “Uncontrollable Events”?
The world is a complicated place to do business. There are many unforeseen circumstances that occur to disrupt the normal dynamics of a labor market. Examples include:

hyper-inflation, devaluation and other economic events;
natural disasters, such as earthquakes, floods, etc.;
periods of unrest, civil war or other armed conflicts; and
accidents impacting infrastructure such as the power grid and telecommunications.

I’m sure you can think of other situations that fit the definition.

You Need to Have a Policy for “Special Measures”
The common thread in all of the above uncontrollable events is uncertainty — nobody knows what’s going to happen, how long it will last, and what tomorrow may bring.

A Special Measures Policy is a way to assist managers and staff when a crisis occurs. The policy outlines what the company will do when certain uncontrollable events occur.

It might not be what employees want or ask for, but it’s what they can count on from the Company, which turns out to be even more important. Let me give you some examples using the topic everyone is asking about – high inflation.

How to Manage Compensation During Periods of Economic Turmoil
Suppose the situation you are concerned about is similar to what happened in Ghana in the summer of 2014. Devaluation over the 12 months from July 2013 in Ghana was approaching 50%. Various sources reported the annual rate of inflation in Ghana around 15% and trending higher, perhaps towards 20% by year-end. Some sources were reporting even higher numbers.

The first thing to consider is whether or not the situation qualifies as one which should be addressed by special measures. Inflation of 15% to 20% is high, but if the increase is gradual each month then it might be possible to address it through normal compensation management, perhaps with an extra pay adjustment mid-year. But if the inflation rate were higher, say 25% or more, and the increase in inflation happened all at once (or over a short period of time), then special measures might apply. Devaluation is generally not a factor in determining salaries for local staff. However, high devaluation is normally followed by periods of high inflation, so it becomes relevant.

Our recommended approach to managing a situation like the one described above is as follows:

If the threshold you’ve set for inflation (for example) is reached or exceeded, apply your special measures. When establishing thresholds, be sure to identify multiple, reliable data sources. Be wary of official sources.
We suggest providing an across-the-board increase of no more than 25% of the inflation (e.g., if inflation is measured at 40%, provide no more than 10%, which is 25% of 40%). Be sure to consider your desired market position and adjust the increase to be sure you don’t exceed where you want to be positioned in the market.
Treat the increase as a temporary allowance separate from base salary.
Monitor the market over the next three to six months through the use of market surveys, and conversations with consultants and other employers in the market.
When the market movement, as measured by the surveys and other data, exceeds the amount of the temporary increase, it’s time to convert the temporary allowance into base salary.
Having two increases per year instead of one often helps smooth out the disruptions, too.

Why does this approach work? There are several reasons:

You have a policy which can relied on by your employees, providing them with some certainty in an otherwise uncertain period in their country.
While employees often express the need to be “kept whole” that is not how it works — your policy clearly indicates that the Company will offer only partial compensation for special measures. There are no surprises, and you continue to use cost of labor, not cost of living, to drive your compensation program.
It’s a very conservative approach, allowing you to continue to monitor the situation and increase salaries slowly, ensuring you can continue to manage your compensation according to market conditions rather than uncontrollable economic events.
It’s unlikely that you will over-compensate for an event, thus allowing you to have positive employee communications and avoid any possible acquired-rights issues.

There could be variations on how a Special Measures policy is implemented, which types of events are covered, and the specific steps each Company decides to follow.

The important thing is to have a policy and use it.

Employees want to rely on you to help them during a crisis, and managers want to be able to make decisions quickly during difficult times. A clearly written policy for Special Measures addresses these concerns easily.

Other Resources
I have written a few other articles for my blog on related topics that you might find useful as well. Although they were written a few years ago, the information is applicable to current conditions as well.

Here are three useful links:

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Warren joined Birches Group in New York as a partner in 2007, following a long career in Compensation and Benefits at Colgate-Palmolive. He held the position of Director, International Compensation for 10 years immediately prior to joining Birches Group. Warren has broad experience working across the globe with clients on local national and expatriate compensation projects. He leads our Business Development and Client Services teams and manages our strategic partnerships around the world. Warren previously held leadership positions for the Expatriate Management Committee of the National Foreign Trade Council and was president of the Latin America Compensation and Benefits Forum.

VIRTUAL WORK – IT’S NO LONGER THE FUTURE, IT’S NOW! WHY PURPOSEFUL JOB DESIGN, NOT TECHNOLOGY IS WHAT FACILITATES VIRTUAL WORK

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

No matter where you are, COVID-19 is affecting all of us. We all have had to change the way we live, the way we interact with one another, and for most of us, the way we work in the context of the pandemic. With more and more countries enforcing lockdowns of cities, people are forced to work from home as they are asked to shelter in place. Organizations recognized that despite the pandemic, the proverbial show must go on, and virtual work is all of a sudden the new normal.

For a long time, organizations looked at virtual work as something in the distant future, or only applicable to other organizations, or otherwise not feasible. What COVID-19 pushed us all to realize is that the future of work is about enabling our office staff to work from anywhere. Virtual work is no longer the future, it is the present.

Many organizations struggle with virtual work because they are lacking in a fundamental (but often ignored) area of HR: high-quality, purpose-driven job descriptions. Managers are usually asked to draft job descriptions with limited guidance beyond templates, and they end up writing checklists of tasks that they believe illustrate what a job needs to get done, rather than focusing on the purpose of the job. This checklist approach is indicative of an input-driven mindset that struggles to adapt once disrupted.

Birches Group’s Community™ approach has enabled us to prepare and practice virtual work long before the pandemic began through the use of output-based job descriptions, putting zero emphasis on the physical presence of staff at work and instead focusing on what they deliver at the end of the day.

When organizations shift to an output-based mindset, it doesn’t matter what steps our staff take in their work or where they do it from – what matters is getting the job done. When disruptive events like COVID-19 happen, output-based definitions of work facilitate working from home because it empowers staff to be more creative in their approach to work, while at the same time freeing them from managers looking over their shoulders. We find that when staff are given this independence, it promotes a more collaborative work environment, one in which staff communicate more because they are not just following a set script. They need to explain their process and thinking, and get buy in from across the organization. Ultimately, this even helps shift discussions on performance from cascading objectives to simply asking, “Did the employee fulfill the purpose of their jobs?”

In the different countries where Birches Group staff are based, we have been able to respond quickly, especially once local authorities have limited movement, locally or internationally. Having a framework in place for virtual work has allowed our staff to continue business activities as normal and maintain relationships with our clients, even as each of us try our best to manage through these uncertain times.

COMPENSATION TIPS IN WAR-TORN COUNTRIES

Written by Bianca Valencia on March 7, 2021. Posted in Resources.

Geopolitical tensions in the Middle East have taken a severe toll in the region’s economic stability. Countries currently confronting waves of unprecedented civil wars such as Yemen, Syria, Iraq, and Turkey, along with an unprecedented flow of refugees, have achieved very minimal GDP growth in the recent years. And there is spillover to neighboring countries such as Lebanon and Jordan as well.

The economy of Yemen, for instance, contracted by 28.1% after a year of ravaging conflicts since March of 2015, indicating an imminent hyperinflation. On a broader scale, inflation in the MENA region surged from 3.9% to 4.1% in May – the highest rate since October of 2015.

Living in war-torn areas is grueling and difficult for employees.  Volatile prices result from high inflation rates, coupled with periodic shortages of goods. These uncontrollable events are disruptive, and quite often, employers are compelled to rethink compensation packages to help address the pain and difficulty of living amid civil unrest, especially where the turnover of staff is uncomfortably high.

In countries experiencing a crisis, monitoring GDP, inflation rates, and other economic indicators along with survey data may be insufficient for you to determine proper salary actions. As employers, you need to ask: with fluctuating inflation and limited availability of reliable data, what is the best way to manage compensation packages?

A Way Forward

Reviewing your compensation policies requires looking at how other organizations adapt and react in conflict-stricken economies. Instead of just increasing base salaries, which permanently increases fixed costs, employers sometimes provide special benefits such as cash allowances instead, which are usually implemented on a temporary basis. This approach allows employers to respond conservatively and manage costs effectively until the political turmoil in the region gets resolved. In Iraq and Syria, for example, some employers have reported providing a Risk Allowance to their staff during times of conflict.  Such steps go a long way towards ensuring loyalty and reducing undesirable turnover.

Employers can also take steps to assist staff with commuting to the office safely, and other security measures.  Work from home options are also helpful when it is too dangerous to travel to the office.

Even though declining oil prices are impacting the region’s economy, the World Bank reports that the private sector is hoped to become the backbone of a new growth model in the Middle East, especially when effective policies are able to address security conditions and long-standing conflicts that currently upset business sentiment. As the economy recovers, the market will soon catch up, and salaries will increase more rapidly.

Birches Group provides updated, concise, and easy-to-digest labor market data reflective of the actual market conditions on which you can base your decisions. Using a cost-of-labor approach, our data allows you to monitor market movement over short- and long-term periods.  Our surveys are updated three times a year, in April, July and October, providing a current window to market practice on a continuous basis.

To find out more about the conditions in countries mentioned in this article, or to learn more about Birches Group surveys throughout the developing world, please contact us.

WHY INCUMBENT DATA IN SALARY SURVEYS IS MISLEADING

Written by Bianca Valencia on December 10, 2020. Posted in Resources.

For many years, employers have used salary surveys to provide market references to manage compensation in their organization and to “price jobs” in the market. Conventional wisdom suggests a high-quality, reliable survey has the following characteristics:

The largest possible group of participants
The greatest number of specific jobs
The highest number of incumbents reported
Survey statistics based on incumbent-weighted averages

In short, bigger is better.

As is often the case, we believe that the conventional wisdom is wrong!

Incumbent-based data is not job-based – it’s personal!

Think about it.

Salary ranges represent the range of pay an employer is prepared to offer for position with the same level of contribution to their organization (e.g., the same equivalent worth).
All incumbents are placed within the same internal, generic range (employers do not usually have separate salary scales for each occupational group or function).
Individual salary levels are not determined by any job factor! Incumbent salaries are based on personal characteristics such as qualifications, skills, experience and performance, and organizational constraints such as internal policies and guidelines, and internal equity.

There are no job-based factors used to determine placement in the range. It is easy to conclude using actual incumbent salaries instead of salary ranges is — at best – misleading, if not entirely invalid. But don’t take our word for it. Let’s put it to a test.

Salary Range Data is Highly Correlated to Incumbent Values

Birches Group did an analysis of actual incumbent data values and the corresponding salary range values for BG-10 level Senior Working Professional roles in Jamaica. The dataset included positions from seven different job families. Twenty-nine employers reported data at this level.

To start the analysis, we examined each discrete position reported by each employer. In the chart below, the positions are color-coded by occupation (job family), and each employer is represented by a vertical array of dots. The chart shows all observations, not a specific percentile.

You can see there is a wide variety of values, both within each employer and across different ones.

Next, we examined the salary ranges for these employers, and determined how the incumbent salaries fell into each employers’ salary range. The chart below shows the ranges.

It’s clear that except for two employers with no formal range defined (the two single dots in the chart circled in red), the rest all have salary ranges defined. Some of the incumbent values are distributed across the ranges, while some are more clustered, but they are all within the range! You will also notice that the range spans (the “distance” from minimum to maximum) varies quite a bit – some employers use narrow ranges, others wider ranges, depending on their unique circumstances and requirements.

A common benchmark that many clients use is the 50^th percentile or median of the market. While we could debate the definition of “the market” (and we will in another post), it is possible to measure the median of the salary ranges in a market.

For BG-10 in Jamaica, the subject of this analysis, the 50^th percentile salary range is J$ 6,273,150 to J$ 9,576,152. We calculated these numbers by simply separately calculating the median of all the reported minimum values, and all the reported maximum values. The next chart shows this median range added to the incumbent chart.

Now you can see which incumbent data points are within the 50^th percentile range in the market. It’s important to realize that a percentile value in a salary survey should never be a single number; it should always be a salary range. If you rely only on incumbent data points when using surveys, you are missing out on what is really happening in the market.

Combining the two prior charts yields the next one, which shows the employer salary ranges against the 50^th percentile (shaded blue horizontal bars):

You can observe that just 6 employers (about 21% of the sample) have ranges that are totally outside of the 50^th percentile range of the market. Or stated another way – nearly 80% of employers have a salary range that intersects with the market median range.

We also examined the data by occupation, looking at the mean range for each occupation versus the market.

In the above chart, you can see, aside from Logistics and Program, which were matched by fewer than 8 employers and not truly representative, the rest of the occupational data ranges fall well within the overall 50^th percentile. In other words, the occupation or job family doesn’t impact the going rate for a job very much at all, and it would be very easy to just use the overall data, without any occupational designations, as the basis to determine your market position.

Think about it.

You go crazy trying to match multiple benchmark jobs in surveys. Then you take that data and apply a secret formula (perhaps weighted averages by incumbent count, for example) to arrive at a “going rate” for your midpoint. But the data you are combining isn’t really that different; our data shows you could just take the range we report and go from there. Much easier.

A New Vision for Salary Survey Data

Birches Group believes that salary survey data should be job-based, not personal. Salary ranges represent for an employer the potential range of salary which the organization is willing to pay for a job at a specific grade level in the organization. In other words, the range represents the value the organization attaches to all jobs at that grade level, which are deemed to have equivalent worth because they have been evaluated to the same grade. Salary ranges, not incumbent data, represent job-based values which are appropriate for benchmarking salaries.

By comparing salary ranges instead of incumbent data, employers avoid using personal data, which is volatile and introduces a level of false precision which is misleading when specific jobs or occupations are compared to each other.

Introducing Community™ Market

Community™ Market is the new name for the Birches Group salary and benefits survey. The survey format has been streamlined and simplified and includes several new features, including an easy and convenient way to assess your market position at a glance. Another important change is the way job information will be captured. We will no longer show separate market values for each benchmark job. Instead, we will show data aggregated for all jobs at the same Birches Group level. We will still identify which jobs are in which grade, but as we’ve demonstrated, the occupational differences reported in surveys (including ours) are resulting from personal data, not job-based information, and are not appropriate for benchmarking.

Community™ Market is part of the Birches Group Community™ platform for integrated HR management. The platform includes modules for job evaluation (Community™ Jobs), skills assessment (Community™ Skills) and performance management (Community™ Performance) in addition to market surveys. The job levels established using our Community™ Jobs methodology are used to provide job levels in our surveys, and to assess skills and performance against standards that reflect the same job levels. It’s the first integrated approach to human resources management.

Learn More

Contact us to learn more about the changes in our survey methodology, or to explore how the Community™ platform can be useful for your organization.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz to know your score!