Remuneration benchmarking review


It is acknowledged as good HR practice to regularly conduct a remuneration benchmarking review in order to ensure that the organisation is paying the ‘right’ remuneration to staff. A well-known and highly respected Sydney-based community services association had not conducted a remuneration benchmarking review before. With twenty staff, they realised that it was important for both staff retention and staff recruitment.

The Problem

The organisation was experiencing the dual problems of not being able to attract good quality applicants for any of the recent roles advertised and they were fast losing long-standing, capable staff to other community service organisations. Exit interviewing confirmed that poor remuneration was a significant part of the problem. They really needed to perform some remuneration benchmarking. Their research led them to Wentworth Advantage.

The Solution

Wentworth Advantage provided guidance to the community service association on the recommended remuneration of all staff, taking into consideration their:

  • Skill level, and
  • Impact and contribution of the person on the success of the organisation.

For the purposes of comparison to the market, Wentworth Advantage used two surveys:

    1. The latest Australian Institute of Management (AIM) National Salary Survey, and

    2. The latest Associations Forum/Wentworth Advantage – Associations National Salary Survey. Note that this survey, conducted by ourselves and Associations Forum – focuses specifically on membership-based Associations.

The Outcome

A highly comprehensive Remuneration Benchmarking Report was provided to the Association outlining appropriate remuneration levels for all staff in line with market expectations.

Each position was analysed and benchmarked against the most appropriate survey position. The Report outlined – person by person – whether their current remuneration package was below market, above market or within acceptable market rate range. This provided the Association with valuable information allowing them to make educated decisions about whether the positions’ remuneration needed adjustment to market rates.

As a result of the survey, the Association has adjusted the remuneration of a number of positions within their Secretariat and they are now able to attract higher quality applicants for advertised positions, and they are now paying all staff at acceptable market rates.

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