Salary Benchmarking

Salary benchmarking is the process of comparing an organization's salaries for different roles against industry standards or similar positions in the market. This helps employers understand if they are paying competitive wages, ensuring they attract and retain talent. By gathering data on salaries from various sources, companies can adjust their pay structures, creating fair compensation that reflects the job's responsibilities, skills required, and location, while also considering their budget. Ultimately, it aims to maintain workforce satisfaction and reduce turnover by aligning compensation with the prevailing market rates.