Salary benchmarking for global teams

• Salary benchmarking supports a strong global compensation strategy.
  It enables multinational employers to compare salaries and benefits against local market standards, ensuring competitive and compliant pay across international markets while strengthening overall global payroll management.
• It ensures compliance and reduces risk when managing an international workforce.
  Benchmarking highlights statutory pay requirements, mandatory benefits, collective bargaining agreements, and local legal considerations—helping businesses remain compliant and audit-ready across borders.
• It promotes fairness, equity, and talent retention worldwide.
  By identifying local wage norms and pay gaps (including gender and other disparities), salary benchmarking helps employers offer equitable compensation, attract top talent, and build a reputable employer brand globally.

Dear Hiring Managers,

We hope this article finds you well. We are writing with regard not to a specific role you have advertised, but to all the roles for which you are hiring, have hired, or ever will hire – not to sound too eager!

In short, what we would like to know is: when hiring and maintaining a global team, do you use salary benchmarking to appeal to top talent, retain a committed and happy international workforce, and build a strong reputation as a reputable employer across borders?

If not, please read on to discover why you should make salary benchmarking part of your compensation strategy, and how multinational employers can leverage this valuable tool to pay fairly across global markets.

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, as well as the relevant legal and ethical considerations.

Benchmarking can also be undertaken for roles that already occupied, to ensure that current salaries match local norms and expectations. Issues like gender, race, and disability pay gaps can also be highlighted and combatting using salary benchmarking.

Have an audit coming up? Ensure that your pay policies and strategy are 100% compliant in your country or countries of hire by conducting salary benchmarking which will highlight that all rules regarding statutory pay and benefits are being followed.

Why should you use salary benchmarking?

Appeal to new talent pools

When you’re hiring in new locations, your domestic payment strategies are unlikely to be applicable. From local salary rates to varying tax rules, statutory benefits, and cultural expectations, you need to tailor your offering to align with your offerings in other locations, while remaining competitive and attractive to your new country of hire.

You need to make sure that what you’re offering meets local expectations, is above the local cost-of-living, includes mandatory benefits, such as pension or healthcare, and is equitable between individual employees and employees across multiple locations.

Maintain compliance across borders

What you offer at home in terms of salaries and benefits may be very different to what is expected in other countries. A comprehensive salary benchmarking report will highlight what you need to offer to appeal to top talent and to meet local employment laws.

Investing in compliance is key to any successful global venture. Many regions also have collective bargaining agreements (CBAs) which employers need to be aware of. A salary benchmarking report will include information on any relevant CBAs, which can include stipulations regarding the terms and conditions of employment, working conditions, remuneration, hours, leave entitlements, and benefits.

Offer fair and equitable compensation

Only nine countries in the world have managed to close the gender pay gap by 80% or more. Much winder gaps persist around the word - including in the UK, where analysts predict the gap won't close for another 30 years -  with factors like race and ability further impacting people’s earnings. Salary benchmarking reports feature information on the local pay gaps so that you can take steps to combat them when developing your local remuneration strategies.

Centring equity at the core of your payment policies is not only ethically sound, but also leads to a happier global workforce. Satisfied workers will remain loyal to the company for longer, and as retention rates grow, so too will your business’s reputation as a fair employer.

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

Who should you turn to for reliable salary benchmarking services?

When seeking out a trusted partner to conduct your salary benchmarking, you should look for an experienced provider with local expertise. Mauve Group has been in operation for three decades. Our experts have amassed local knowledge over time, and their experience is what you need when strategising hiring in a new location.

Rules regarding pay and benefits differ greatly between regions, and the last thing you want to do is jeopardise your global endeavour by offering non-compliant or unappealing remuneration packages.

Thank you for taking the time to consider Mauve Group as your salary benchmarking partner.

We look forward to hearing from you regarding our Salary Benchmarking service.

Kind regards,

Mauve Group

Find out how we can help your organisation to go global. Contact us, today.

For more information, download our Salary Benchmarking brochure.

FAQs

What is salary benchmarking and why is it important for global teams?

Salary benchmarking is the process of comparing compensation and benefits against local market data in a specific country. For multinational employers, it ensures pay packages are competitive, legally compliant, and aligned with local expectations—making it a crucial part of an effective compensation strategy.

How does salary benchmarking support global payroll compliance?

Benchmarking reports outline statutory pay requirements, mandatory benefits, tax considerations, and collective bargaining agreements in each country of hire. This helps organisations manage global payroll accurately, avoid legal risks, and remain compliant during audits.

Can salary benchmarking improve equity within an international workforce?

Yes. Salary benchmarking highlights local wage standards and pay gaps related to gender, race, or disability. With this insight, employers can build fair and equitable compensation structures that promote retention, employee satisfaction, and a positive global reputation.