Pay · HR glossary

Salary Benchmarking

Salary benchmarking compares pay for a role with relevant external market information. Reliable comparisons consider job scope, level, location, industry and the date and quality of the data.

Example

An employer compares a senior accountant role with survey jobs of similar responsibility rather than choosing any listing with the same title.

What to keep in mind

Published salaries may cover different components or populations. Distinguish base salary from total compensation and explain sample limitations before using a benchmark to set an offer or pay range.

Further reading

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