Salary benchmarking for global workforces: how to stay competitive across borders

• Salary benchmarking provides accurate, market-specific data that helps organisations offer competitive and compliant compensation packages when hiring internationally.
• Benchmarking supports fairness, retention, and equity, enabling employers to align salaries and benefits with local cost-of-living realities and DE&I regulations.
• Working with expert benchmarking providers ensures strategic, informed global expansion, reducing risk, improving talent acquisition, and strengthening employer brand competitiveness.

It’s easier than ever for businesses of all sizes to expand their horizons and move into new markets. Services like Employer of Record (EOR) minimise costs and time commitment, streamlining the process of global expansion.

EOR is not the only service that has supported the rise of distributed teams. Salary benchmarking is another vital tool that not only supports smooth global mobility, but also boosts organisations’ competitiveness when hiring overseas.

Organisations engaging in global hiring must navigate cross-border differences in labour costs, market expectations, and compliance demands. They must do this while crafting competitive and equitable compensation strategies. This is a lot of leaders to ask of busy teams. That’s where salary benchmarking as a service comes into play.

Global HR solutions providers like Mauve Group offer salary benchmarking services to help companies big and small get off to a strong start in new locations.

What is salary benchmarking?

Salary Benchmarking is a service whereby a team of experts benchmarks salaries and benefits packages against local averages, on behalf of a client, in the location where the client wishes to hire staff.

The experts then compile a report, featuring details and analysis of the economic situation, wage brackets, mandatory and preferred benefits. This is in addition to relevant legal and ethical considerations.

Companies often pair it with Employer of Record (EOR) and global payroll outsourcing.

For more information, visit our Ultimate guide to salary benchmarking.

The importance of global salary benchmarking

Region-specific offerings

In the first instance, salary benchmarking allows companies to offer competitive and location-appropriate salaries. For example, the salary for a computer programmer in San Francisco would differ greatly from that of a computer programmer in Mumbai.

Salary benchmarking allows employers to make strategic decisions around remuneration and ensure that they offer salaries that meet local norms while remaining competitive.

Increased retention levels

When employees feel seen, secure, and valued, they are naturally more likely to remain with their employer. When employees feel undervalued, overworked, and precarious, they will look to greener pastures. Salary benchmarking allows employers to offer healthy salaries, along with attractive benefits packages to support employee wellness and satisfaction.

Salary benchmarking reports will outline which benefits – such as pensions and healthcare – are mandatory, and which are optional. This supports employers to assemble benefits packages designed both to meet compliance standards and also to attract and retain satisfied employees.

Fairness and equity

A comprehensive salary benchmarking report should not only include information on minimum wage but also on the local cost of living in the country of hire. Oftentimes, in places such as Ireland and Cyprus, for example, the cost of living outstrips the minimum wage. It is important for employers to be equipped with information like this to offer fair and competitive remuneration. In doing so, businesses can attract top talent and keep them long-term.

In addition, salary benchmarking will take into account local DE&I rules and regulations. For example, the EU sets out its own directives such as the Employment Equality Directive and the Pay Transparency Directive. Meanwhile, on the country level, nations like Germany and France mandate gender representation on corporate boards, while other countries require certain quotas of people with disabilities.

Salary benchmarking goes a long way towards helping companies work to close the gender, race, and disability pay gaps that persist internationally.

For more information on the legal and ethical considerations in Salary Benchmarking, download our whitepaper.

How salary benchmarking supports global competitiveness

Beyond fairness, compliance, and market alignment, benchmarking also plays a strategic role in global competitiveness. As organisations expand across borders, they must balance the economic realities of local markets with broader business goals and internal structures.

Develop consistent global pay frameworks

Benchmarking allows organisations to maintain internal equity while adapting to local conditions. This prevents discrepancies that could cause resentment or future HR challenges. It can be combined with HR consultancy services for a rounded people-first approach to global management.

Plan international hiring strategically

Understanding the true cost of employment. Salary, plus benefits, taxes, and statutory contributions, enable businesses to choose cost-effective locations for expansion or create accurate workforce planning forecasts.

Respond quickly to market shifts

Benchmarking provides ongoing insight into salary inflation, shifts in role scarcity, or changes in compliance requirements. This allows organisations to respond proactively rather than reactively.

Strengthen employer branding internationally

Employers who offer transparent, competitive remuneration are more likely to attract high-calibre talent, particularly in sought-after fields like technology, finance, science, and engineering. In crowded global markets, competitive pay is a powerful differentiator.

Working with salary benchmarking experts

While it is possible for organisations to attempt their own salary research, the complexity and variability of global markets make expert support invaluable. A qualified salary benchmarking provider like Mauve Group will source accurate, locally validated salary data.

They will navigate local labour laws and compliance nuances. They’ll interpret economic indicators and market trends, plus provide insights tailored to the specific role and industry. On top of all this, they will offer guidance on benefits packages, statutory requirements, and cultural expectations.

By partnering with an experienced provider, especially one that also offers EOR services, companies benefit from a unified approach to global expansion. They can hire confidently because they base their remuneration decisions on accurate data and align them with local compliance standards.

In an era where global teams and cross-border recruitment are more normal than ever, salary benchmarking has become an indispensable tool for any organisation looking to remain competitive.

Frequently asked questions

1. Why is salary benchmarking essential for global hiring?

Salary expectations, mandatory benefits, and cost-of-living metrics vary significantly from country to country. Benchmarking ensures organisations offer fair, competitive, and compliant packages, reducing hiring risks and improving talent attraction.

2. How often should salary benchmarking be updated?

Most companies review benchmarking annually, but fast-changing markets, inflation, or expansion into new countries may require more frequent updates. Regular reviews ensure compensation stays aligned with market realities and regulatory changes.

3. Can salary benchmarking help reduce employee turnover?

Yes. When employees feel adequately compensated and supported with relevant benefits, they are more likely to remain with the company long-term.

Benchmarking helps employers design packages that meet both compliance requirements and employee expectations, improving satisfaction and retention.