external competitiveness

External competitiveness refers to how a company’s pay rates and benefits compare to those of other organizations in the same industry or geographic area. Essentially, it measures how attractive a company’s compensation offerings are in relation to competitors. This is crucial for attracting and retaining talented employees, as a competitive compensation package can encourage skilled workers to choose one employer over another. Companies often analyze market trends and salary surveys to ensure they remain appealing and relevant in a competitive job market while aligning with their financial capacities and organizational goals.