Top 3 reasons why comp benchmarking tools aren't enough

I absolutely love the Waze app. It provides up-to-the-minute information on traffic, accidents, hazards, and speed traps so you can get to your destination quickest and avoid problems while you’re driving. And best of all, it does this in real-time and continuously provides updates to users based on changing conditions. 

If, however, Waze posted information on last year’s traffic, accidents, hazards, and speed traps, its value would plummet. Why would anyone care what happened a year ago? Old data in a real-time world just doesn’t cut it anymore. 

The same goes for compensation benchmarking tools. Talent Acquisition and Talent Rewards professionals need their own version of Waze to help them in real-time gather accurate information and navigate messy “candidate jams” to find the right candidates and deliver the right offers. 

Here are the top three reasons why traditional compensation benchmark tools aren’t enough for today’s shifting candidate landscape:

• Old Data - Annual salary surveys may have been helpful in years past, but they’re no longer dynamic enough to keep pace with today's highly competitive talent market. There are just too many factors in flux to rely on these surveys.
• Inaccurate Data - Salary benchmarking tools don’t provide real-time data and often experience a lag in accuracy. This is especially true in the case of benchmarking tools where wage data is provided by unverified users or as a means to access additional compensation data.
• Bad Offers - Over 90% of today’s salary engine tools use outdated survey methods that don’t capture the current job market. The result: Talent teams spend tons of time trying to recruit a candidate for a must-hire position and, right at the finish line, make an offer that’s way off the actual, real-time compensation expectation and target. Sunk time and a lost candidate, you have to start all over again. 

Compa provides a powerful new way for Talent Acquisition and Talent Rewards teams to learn real-time market feedback on compensation practices and quickly adapt to changing market conditions.

With Compa, recruiters can input pay expectations and compare recent offers and collaborate with other team members and hiring managers to reach pay consensus quicker. The software automates all of the market intelligence in real time and provides insights about compensation across similar industries and organizations.

Click here to see how it works.

‍Summary

Talent teams need to stay on top of market dynamics and operate with real-time information on compensation trends. Otherwise, you can “waze” goodbye to ideal candidates.