Salary Surveys

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When personnel get together and decide to they want to open a business, the one main reason they do so it to make lots of money. Well in doing so there are several things that the new organization will have to consider. Things like employee recruiting, types of training and above all the salary of their employees. Not only will they will have to figure out on how much to pay an each person, but they will also have to figure out on how much they will be each person working in the different levels they have within the organization and stay competitive.

In order for and organization to do this, they will have to conduct a salary or pay survey. A salary survey is when accounting or HR personnel collect salary or pay data from outside sources and other organizations to help them decide what they will pay to their employees for the different levels and types of jobs they currently have set in place (Milkovich 2008). Now most of this information that they collect is gathered from other organizations that are in the same are as they are which could be retail, textile, or technology. Once the information is compiled, they then generate a report that is forwarded to the higher headquarters personnel for action.

Now in order for a survey to be conducted, there are a few things that need to be determined. Some of those things that should be considered will be 1) why are should we conduct a survey and how often, 2) what source should an organization us to gather the needed data for the survey, 3) what type of method should be used, and 4) determine the strengths and weaknesses of the data gathered (Milkovich 2008). Once all these points can be identified and answered, then and only then will an organization be able to and proceed to the survey.

Ways that an organization can collect the needed data vary from region to region and also on the demographic make-up of their current location. Organizations know that they cannot just take one source and make their final change, but rather collect the data from different sources to make a logical and economical decision. Companies can either pay for information from web-based agencies or they can search the internet and communicate with managers and RMD personnel of their competitors. A strength of paying for web-based agencies like Economic Research Institute , etc is that you will get the most current and up to date information. As with the communicating with the managers and searching the internet, you don't know what type of data you will get because personnel within another organization might try and hide data just to throw the competition off (Badders 1982 and Goldwasser 2000) .

With determining on which type of source will be used, it will lead into which method will be used by the source to collect the information for an organization. With the web-based collection process, it will cater to what the business want to what is out there and develop surveys that will be sent to the organizations employees. This is either done by an email with instructions on how to complete the survey or they will just gather the information for data already submitted by companies in their area. They will set time lines for the survey to be completed and also ensure that people don't take the survey more than one time in that period. This is so that they get real data from all personnel and not a disgruntled employee or company.

Now once the data is collected, organizations need to know what they want to do with the information and determine if they need any or all of what was provided. Having too much or too little data can confuse the HR personnel and have them forget the real purpose of the survey which is to determine if they are on track with federal laws and their competitors (Snyder 1991). Some of the strengths for having or compiling the data are for them to see where organizations rank or compare to their counterparts. If surveys are conducted more often it also lets the organizations know how they are doing within their own organization and to see if they are rewarding their employee like they should be doing. A weakness for having the data which I don't really think that it is a weakness on the survey itself but might show a weakness within the organization and that is that they will see that they are not rewarding the right employees enough and then that shows them that they might leave and join competitors which are paying a high salary.


1. Badders, F., & Sawyer, J. (1982). More Bricks with Less Straw: The Third Annual SACSA Salary Survey. Southern College Personnel Association Journal, 4(1), 52-60.

2. Goldwasser, D. (2000). Training's Annual Salary Survey. Training, 37(11), 84-86,89-90,92,94,96,98,100.

3. Milkovich, G., Newman, J.(2008) Compensation. McGraw-Hill/Irwin, New York, NY

4. Snyder, J. (1991). Diagnosing and Dealing with Salary Compression. AIR 1991 Annual Forum Paper.