To remain competitive in today’s fast-paced business environment, organisations must balance attracting top talent with managing costs effectively. One critical tool in achieving this balance is a remuneration survey – a systematic approach to gathering and analyzing compensation data to ensure fair and competitive pay. Whether you are a startup in Lagos, a multinational corporation in Paris, or a growing company in Johannesburg, understanding how to conduct a remuneration survey can help position your organisation as an employer of choice while improving employee satisfaction and retention.
This article critically examines the importance of remuneration surveys, provides a step-by-step guide to conducting them, and uses examples to highlight their impact on modern businesses.
What Is a Remuneration Survey and Why Does It Matter?
A remuneration survey is a study that collects data on salaries, bonuses, incentives, and benefits across specific industries, job roles, and geographic locations. This data allows businesses to benchmark their compensation strategies against market standards, ensuring that they they remain competitive and fair. For businesses, the value of a remuneration survey lies in its ability to address two key challenges:
- Attracting Talent: Competitive pay is a significant driver for job seekers. Surveys help businesses identify market rates for roles to attract top candidates.
- Retaining Employees: Fair pay reduces labour turnover by ensuring that employees feel valued and fairly compensated.
For example, in Nigeria’s booming technology sector, companies like Paystack and Flutterwave rely on remuneration surveys to offer competitive salaries for software engineers, preventing talent drain to international employers. Similarly, global firms like Deloitte and PwC use these surveys to set competitive packages for consultants across regions.
Steps to Conducting a Remuneration Survey
Conducting a remuneration survey involves meticulous planning, data collection, and analysis. Below is a step-by-step guide to help businesses carry out a successful remuneration survey:
Step 1: Define the Objectives
Before starting your remuneration survey, determine what you aim to achieve with it. Common objectives include:
- Benchmarking salaries and benefits.
- Identifying pay gaps for key roles.
- Informing compensation strategies for budget planning.
For instance, a bank in Nigeria might conduct a survey to ensure its remuneration packages remain attractive for customer service executives compared to competitors like Zenith Bank or GTBank.
Step 2: Identify the Roles and Data Scope
Decide which job roles and industries that the survey will cover. Clarify the type of data to collect, such as:
- Base salaries
- Bonuses and incentives
- Benefits (e.g., health insurance, pensions)
- Allowances (e.g., housing, transportation)
For example, if you are in the healthcare sector, you may target roles like nurses, doctors, and lab technicians. In technology, the focus might be on developers, product managers, and data analysts.
Step 3: Choose Your Methodology
There are two main ways to conduct a remuneration survey:
- Internal Survey: Collect data from within your organisation to evaluate pay equity across departments.
- External Benchmarking: Gather data from industry peers or use third-party survey providers for comprehensive market insights.
Third-party firms like Mercer, KPMG, or local consultancies provide credible and reliable remuneration surveys for various industries. Companies can also partner with HR associations (CIPM, ACRM etc) to access collective data.
Step 4: Collect Data
Data collection can be done through:
- Questionnaires and surveys sent to industry peers.
- HR databases and job portals like LinkedIn, Glassdoor, or local platforms such as Jobberman in Nigeria.
- Engagement with industry bodies or associations.
Ensure the data you collect is accurate and anonymized to maintain confidentiality. For instance, organisations in the oil and gas sector in Nigeria often pool data through associations like the Petroleum Technology Association of Nigeria (PETAN).
Step 5: Analyze and Benchmark Data
Once the data is collected, compare it against your current compensation packages to identify gaps or trends. Key areas to analyze include:
- Median and average salaries for specific roles.
- Variances based on experience, location, and company size.
- Benefits offered by competitors.
For instance, a technology startup in Lagos might discover through analysis that competitors are offering performance bonuses or stock options to retain top software engineers.
Step 6: Develop a Remuneration Strategy
Use the survey findings to create a competitive and sustainable remuneration strategy. This strategy might include:
- Adjusting base salaries for underpaid roles.
- Introducing new benefits, like professional development allowances or wellness programmes.
- Implementing performance-based bonuses to reward high achievers.
Companies like Amazon and Facebook, for example, use survey data to enhance their total rewards packages, which include stock options, generous bonuses, and unique benefits to retain top talent.
Step 7: Communicate the Results Internally
Share key findings with leadership, HR teams, and managers. Transparency about pay structures can improve trust and morale within the organization.
Examples of Successful Remuneration Surveys
1. Paystack (Nigeria): Paystack, a fintech company, uses remuneration survey data to remain competitive in Nigeria’s tech ecosystem. By benchmarking salaries and benefits, the company ensures it attracts and retains top software engineering talent despite international competition.
2. South African Mining Sector: Mining companies in South Africa conduct regular remuneration surveys to ensure that engineers, geologists, and technicians receive competitive pay. This approach helps mitigate talent poaching by international firms operating in the region.
3. Google: Google relies on extensive global remuneration surveys to determine salaries for its diverse roles, from engineers to marketing professionals. By analyzing trends across regions, Google aligns its compensation strategies to attract top talent worldwide.
4. Dangote Group (Nigeria): Dangote Group conducts remuneration surveys to maintain its reputation as one of Nigeria’s top employers. By benchmarking salaries, allowances, and benefits, the conglomerate ensures it remains competitive across sectors like manufacturing and logistics.
Benefits of Conducting a Remuneration Survey
- Competitive Advantage: By understanding market trends, businesses can position themselves as attractive employers in competitive industries.
- Improved Retention: Fair and competitive compensation reduces labour turnover and improves employee loyalty.
- Budget Planning: Surveys help businesses align compensation strategies with financial goals.
- Increased Transparency: Fair pay structures foster trust and motivation among employees.
- Addressing Skills Shortages: Surveys help businesses adjust pay for critical roles experiencing talent shortages.
Conclusion
A well-executed remuneration survey is a game-changer for organisations looking to attract, retain, and motivate top talent. By providing actionable insights into salaries, bonuses, and benefits, these surveys enable businesses to remain competitive and fair in their compensation strategies.
Whether it is a growing startup in Lagos, an established mining company in Johannesburg, or a global giant like Google, remuneration surveys offer the data-driven clarity needed to make informed decisions. Organisations that invest in understanding compensation trends not only secure the best talent but also create environments where employees feel valued, motivated, and committed to success.
Ultimately, conducting remuneration surveys is not just about staying competitive but about fostering a workplace culture where talent thrives and businesses grow.
Contributed by Agolo Eugene Uzorka, a Human Resource Consultant and Content Writer.
