In general parlance, Salary benchmarking or compensation benchmarking is the process of comparing the compensation and benefits packages of an organization against those of other companies in the same industry or geographical location. The aim of salary benchmarking is to ensure that an organization’s salaries are competitive and aligned with the market.
This excel template is helpful for HR Professionals, Payroll Consultants and business leaders.
How is salary benchmarking or compensation benchmarking done ?
Salary benchmarking typically involves collecting data on various factors such as job title, job description, experience, education, and location. This data is then analyzed to determine the market rate for each job role, which can be used to adjust an organization’s compensation packages to match the industry standards.
Salary benchmarking can be done using various sources such as industry reports, surveys, and online resources. One of the famous online tool is using CompTool, which provides data on various industries and organization.
The data collected through benchmarking can be used to identify any gaps or discrepancies in an organization’s compensation structure and to make informed decisions about salary adjustments, bonuses, and other benefits. This activity also helps to maintain fairness and equity in the workplace, which can improve employee satisfaction and morale.
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Features of this salary benchmarking excel template
This Salary Benchmarking Report Template will help you formally set up and track salary benchmarking in your organization and help you measure internal progress, performance against competitors and how your processes rank against other organizations.
After downloading this excel template, you will find various worksheet, each worksheet is interconnected and can help you in conducting the benchmarking easily. With this template, you can derive the following benefits –
- A structured and clean excel template to compile and manage your employee baseline salary data.
- A template to help you record market data to benchmark employee salaries against.
- Large numbers of employee salaries can now be automatically benchmarked using VLOOKUPS and formulas to reveal the pay gaps.
After conducting the activity, you can use presentation templates to showcase your findings and summary of assessment.
Download and use salary benchmarking excel template
Now, let us look into how to use this salary benchmarking template. You should have Microsoft Office/ Microsoft Excel installed in your system.
Post installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software. Once extracted, you can open the file using Excel and start entering data or customizing the template. You can change currency and fields but with caution.