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HR Consultant Mock Interview

Question 3 of 40 for our HR Consultant Mock Interview

HR Consultant was updated by on March 31st, 2021. Learn more here.

Question 3 of 40

Do you have experience using HR data analytics for the purpose of compensation benchmarking?

"Compensation benchmarking is a critical task, ensuring that our company is competitive in their pay, allowing us to gain the best talent in the market. Luckily, our company is incredibly generous and competitive, and we pay on average 7% more than our top competitors. I have gathered this information in the past in a few different ways. I have talked with new staff from other employers to find out their compensation system. I have also conducted exit interviews to determine if the salary was a determining factor in an employee leaving. I also pay to participate in industry-specific compensation surveys, where I submit our salary information and then receive a final report tallying all employers that participated. Glassdoor and Salary.com can also be good resources."

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How to Answer: Do you have experience using HR data analytics for the purpose of compensation benchmarking?

Advice and answer examples written specifically for a HR Consultant job interview.

  • 3. Do you have experience using HR data analytics for the purpose of compensation benchmarking?

      How to Answer

      Compensation benchmarking, or salary benchmarking, is the process of matching the pay of private jobs to similar roles from other companies. For instance, you compare how much your company's competitor will pay for an electrical engineer with five years' experience to ensure your company is competitive in its compensation structure. The practice of benchmarking ensures that you are never out of touch with your company's offering and that your company can more easily attract top talent. Also, when you accurately benchmark, you can better plan for annual employee increases. Discuss the tools that you may have used in this process in the past.

      Written by Rachelle Enns on August 31st, 2021

      Entry Level

      "I understand the concept of salary benchmarking, and I look forward to learning the tools your organization uses to collect and track this data. The practice of benchmarking is important. I can see numerous benefits to benchmarking salary, including competitive hiring, better market value knowledge, and reduced talent loss due to better-paying roles with competitors. I believe that employee and candidate surveys could be a helpful way of collecting this data."

      Written by Rachelle Enns on August 31st, 2021

      Answer Example

      "Compensation benchmarking is a critical task, ensuring that our company is competitive in their pay, allowing us to gain the best talent in the market. Luckily, our company is incredibly generous and competitive, and we pay on average 7% more than our top competitors. I have gathered this information in the past in a few different ways. I have talked with new staff from other employers to find out their compensation system. I have also conducted exit interviews to determine if the salary was a determining factor in an employee leaving. I also pay to participate in industry-specific compensation surveys, where I submit our salary information and then receive a final report tallying all employers that participated. Glassdoor and Salary.com can also be good resources."

      Written by Rachelle Enns on August 31st, 2021

      Anonymous Interview Answers with Professional Feedback

      Anonymous Answer

      "Yes, I have pulled information from my counterparts in the industry to compile compensation benchmarking. I have used data collected by third-party companies in the absence of local market intelligence to create appropriate wage rates and merit adjustments."

      Rachelle's Feedback

      Very good! If possible, be more specific on the third parties that you use, in case the interviewer is familiar.
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