Salary benchmarking reports: what HR professionals should look for

Don't let outdated pay data cost you top talent – chat to our team to explore smarter salary benchmarking solutions.

• Understand the key components of effective pay benchmarking reports to support fair and competitive compensation strategies.
• Learn how benchmarking informs talent attraction, retention, and global workforce planning.
• Discover how Mauve Group can support HR professionals with tailored international salary data and compliance expertise.

In today’s competitive labour market, salary benchmarking has become an essential tool for HR professionals. Close to 90% of workers value salary above all else when seeking a new role. A well-structured pay benchmarking report enables businesses to make informed decisions about employee compensation. It ensures their pay strategies are fair, competitive, and aligned with industry standards.

But with an abundance of data sources and providers, not all salary benchmarking reports are created equal. Knowing what to look for can mean the difference between actionable insights and misleading figures. Let's explore the critical elements HR professionals should seek in salary benchmarking reports and how to use them strategically.

What is salary benchmarking?

Salary benchmarking is a service offered by global employment solution providers that helps businesses with making strategic compensation decision. Also known as pay benchmarking, it is the process of comparing internal job roles and salaries to external market data. It provides HR teams and decision-makers with insights into how their organisation’s pay scales align with the wider market, both nationally and internationally.

Benchmarking data can come from a range of sources, including industry surveys, government labour statistics, recruitment firms, and specialist providers. The output is often presented in the form of a report showing salary ranges, averages, percentiles, and benefits by job title, location, sector, and seniority.

Why salary benchmarking matters

A comprehensive salary benchmarking report serves multiple strategic purposes.

Talent attraction

Competitive pay is one of the primary factors candidates consider when evaluating job offers. Businesses can attract and retain talent by offering competitive, equitable remuneration packages.

Retention

Evidence shows that employees are more likely to stay if they believe their salary is attractive in comparison to competitors.

Compliance

In certain jurisdictions, organisations must demonstrate pay equity and transparency to regulators or face penalties.

Budget planning

Benchmarking helps HR and finance teams set appropriate salary bands and manage compensation budgets more effectively.

In short, accurate benchmarking data provides the foundation for fair pay policies, improved employee satisfaction, and strategic workforce planning.

Key features to look for in a salary benchmarking report

To get the most value from a benchmarking report, HR professionals should evaluate the report’s structure, data sources, and relevance to their organisation. Here are the critical features to consider:

Market relevance

A good report should offer tailored data specific to your industry, job functions, and geographical markets. Overly general data can distort comparisons and lead to inappropriate salary decisions.

Look for industry-specific insights (e.g. tech, healthcare, finance, etc.), job-level granularity (entry-level to executive), and regional breakdowns. Ensure you find data pertaining to company size or revenue, where possible.

Trusted data sources

Reliable benchmarking reports are built on verified, up-to-date data. Sources may include:

• Proprietary employer surveys
• Public labour market data
• Recruitment agency placements
• Internal HRIS system aggregates.

Avoid reports based on crowdsourced or self-reported data, unless the sample size and methodology are transparent and statistically sound.

Methodology transparency

Understanding how the data was collected, cleaned, and analysed is crucial. The report should clearly outline:

• Sample size and demographic breakdown
• Date range of the data
• Normalisation and outlier removal processes
• Currency conversions and cost-of-living adjustments for international comparisons.

Without this context, it's difficult to gauge the reliability or applicability of the figures.

Benefits and total compensation

Salary isn’t the only part of the package. A high-quality benchmarking report will also include data on:

• Bonuses and incentive schemes
• Pension contributions
• Health and wellness benefits
• Paid time off and flexible working policies.

Understanding the full compensation picture helps HR professionals compete more effectively for top talent.

Comparisons across employment models

With the rise of remote work and cross-border hiring, salary benchmarking should also reflect different types of employment arrangements. Reports that include insights into contractor rates, gig workers, or Employer of Record (EOR) structures can help multinational organisations make more informed decisions.

How HR can use salary benchmarking effectively

Benchmarking reports are only useful if integrated into decision-making processes. Here’s how HR teams can apply benchmarking insights:

• Set competitive salary bands: use benchmark data to create structured pay scales for roles across regions.
• Support pay equity audits: identify disparities and implement corrective action where needed.
• Inform global hiring strategies: compare costs across jurisdictions to optimise hiring locations.
• Negotiate with confidence: equip hiring managers with market-backed data during offer discussions.
• Improve transparency: communicate clearly with employees about how salaries are determined.

Benchmarking is not a one-time task – it should be updated regularly to reflect changing market conditions and evolving business needs.

Common pitfalls to avoid

While salary benchmarking is powerful, it can be misused or misunderstood. Here are some common mistakes to avoid:

• Relying solely on averages: mean salary figures can be skewed by outliers. Median and percentile-based data offer a more balanced view.
• Using outdated data: in fast-moving sectors, even year-old data may be irrelevant. Ensure reports are current and refreshed regularly.
• Misaligning job roles: ensure your internal job descriptions are accurately mapped to benchmark roles. Mismatches can lead to flawed comparisons.
• Neglecting local context: market conditions, tax regimes, and cost-of-living factors vary widely. Don’t apply global benchmarks without regional adjustment.

The role of benchmarking in global workforce planning

For international organisations, salary benchmarking plays a vital role in workforce planning. When hiring across multiple countries, understanding regional pay standards is essential for:

• Setting realistic hiring budgets
• Ensuring compliance with local labour laws
• Aligning compensation strategies with business goals.

Global benchmarking also supports decisions around where to expand, whether to use local hires or expatriates, and how to structure cross-border compensation packages.

How Mauve Group can help

Navigating global salary benchmarking requires both data and local knowledge, and that’s where Mauve Group excels. With over 29 years of experience in global workforce solutions, Mauve Group provides tailored benchmarking insights alongside its suite of Employer of Record (EOR), global payroll, and HR consultancy services.

Mauve’s expert teams combine in-depth market research with real-world employment expertise across more than 150 countries. Whether you're entering a new market, restructuring globally, or evaluating your compensation strategy, Mauve can provide the accurate, region-specific benchmarking data you need, alongside compliant employment solutions to implement your findings with confidence.

Get in touch with our team today.