The importance of salary benchmarking for your business

In today’s dynamic global business landscape, setting your business apart from the crowd is crucial to its success. With highly educated workforces rapidly expanding the talent pools in regions such as Latin America and Asia Pacific, it is key for organisations wishing to secure and maintain top talent to ensure that they are optimising their hiring strategies.

For businesses expanding into new locations, salary benchmarking is one strategy that can be employed to attract and retain a strong, committed workforce in your chosen country or countries.

What is salary benchmarking?

Salary benchmarking is the process of evaluating a company's salary bands against the local average. Simply put, it means ensuring that your business is paying competitive salaries while meeting the expectations of top local talent.

What are the benefits?

Salary benchmarking comes with a number of benefits. Let’s take a look at the top reasons why salary benchmarking is a popular service.

Optimise your budget

By using salary benchmarking, businesses ensure they are offering competitive salaries in line with local expectation, while not overspending. Salaries vary massively between countries, and so what is considered a competitive salary in one location may be drastically higher or lower than in another country. By arming yourself with the latest salary data, you are ensuring that your business is providing salaries that make sense in the context of the country in which you are hiring.

Attract and retain top talent

Offering competitive salaries is of course vital in attracting and retaining top talent. By remaining up to date with the latest salary figures in your chosen location, you can ensure that you are consistently reviewing your salaries.

As well as attracting a highly skilled workforce, this attention to salary will ensure that workers feel appreciated and supported which will increase retention through employee engagement and commitment.

Save time and resources

Undertaking complex global salary analyses takes a huge amount of time and effort, but outsourcing your salary benchmarking needs to a global employment solutions provider such as Mauve Group means that you can focus on your hiring process.

Our team of experts will revert to you with a comprehensive analysis, including: Salary Band Identification, Industry Comparison, Country-Specific Insights, Salary Range and Payroll Calculations and Statutory and Basic Non-Mandatory Benefits.

Ensuring equity

Salary benchmarking is an important tool for achieving pay equity and nurturing an equal workplace. By regularly reviewing your salaries and keeping up to date with fluctuations and changes in the  local employment landscape, you can ensure that you are paying equitable salaries to your employees.

The gender pay gap, pay disparities between individuals of different ethnicities and those with disabilities are all common issues in the world of work, and as an employer, it is your responsibility to do everything within your power to eliminate these gaps and ensure that your employees are not experiencing discrimination in any form.

How can Mauve help?

Mauve’s international network across 150+ countries means that no matter where you’re interested in expanding into, we can support you. With 28 years’ experience in the sector and a wealth of cross-industry expertise - having helped 2,250+ organisations across 70 industries - Mauve’s people-led approach and flexible, bespoke solutions to your challenges will support your business to thrive.

Contact our team today.