What is salary benchmarking?

Salary benchmarking is the process of evaluating a company’s internal job salaries based on their external value. Salary benchmarking involves analyzing the main components of each position and comparing these positions to similar jobs in other companies.

Why is salary benchmarking important?

Salary benchmarking helps compensation managers assign competitive salaries. Though compensation isn’t the only important aspect of a job, it’s obviously a key factor, as everyone wants to bring home a respectable paycheck.

What are some salary benchmarking tools?

There are tools available that can assist you with salary benchmarking, making the process much smoother and easier. HiBob has produced a compensation benchmarking tool through a strategic alliance with Mercer, creating a trusted source for workforce data collected from over 115 million people worldwide. This data is collected from over 130 countries and is updated every quarter so you can always be assured of its accuracy.

How do you produce salary benchmarking reports and data?

It is possible to use spreadsheet software such as Excel for conducting basic comparisons. However, this is a time-consuming manual process that is prone to human error. To speed things up and create more advanced reports, consider using a specialist package such as HiBob’s compensation management software.

Why should salary benchmarking be a part of modern HR strategy?

HR leaders should integrate salary benchmarking into their strategy to keep pace with the fluid, global job market. Salary benchmarking helps HR build attractive, competitive salaries that can directly improve the employee experience and fuel higher levels of employee engagement.

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