By Dana Munn
There’s more to compensation than making a direct deposit into the accounts of employees twice a month. It is a strategic decision, and a philosophical one. And it’s complicated. If you’ve had questions about the right level of compensation for staff, you’re not alone. Below are some of the most frequently asked questions I field.
Why do I need to use a salary survey?
Attracting and retaining talented executives is crucial to your credit union’s success.
Compensation data helps keep your finger on the pulse of industry trends and allows you to benchmark your organization against others. The old saying, “information is power,” holds true when it comes to salary administration.
When do I use a salary survey?
It is a best practice to do a review of salaries on an annual basis, and then periodic adjustments as needed if you experience turnover or a position has changed.
What are the risks of not using a salary survey?
There are risks to both underpaying and overpaying. Paying below market may result in excessive turnover or lower caliber of employees, which would have a negative impact on member service. Excessive compensation drains earning and depletes funds that may be better used elsewhere.
What are the benefits of an online salary survey versus a printed version?
The downside of a hard copy is it starts becoming obsolete almost as soon as it is printed. An online reporting system is updated constantly as credit unions input their data. Online access to information also provides the ability to search and customize reports in a variety of ways not possible in print. Here are a few of my favorite online features:
- Compensation calculators let you dig deep into each specific job type by annual pay, education levels, professional development budgets, experience and benefits.
- You can look at organization-wide information with reports including demographics, overall pay increases/decreases, professional development dollars, executive renewal process, variable pay data and more.
At the end of the day, having a solid compensation management system just makes good business sense. The combination of a core philosophy, solid data, and a means of benchmarking yields a win-win outcome for employees and credit unions alike.
Dana J. Murn is CUES’ Products & Services Coordinator.
Interested in improving your executive salary administration? Learn more about CUES Executive Compensation Survey and download CUES 2013 Executive Compensation Survey Summary today.
