Salary benchmarking is the process of comparing your organisation’s compensation against market rates for similar roles in the same industry or geographic area, ensuring your pay strategy is both competitive and fair.
This practice empowers HR teams to align pay with industry standards, retain talent, and manage compensation budgets effectively.
Effective salary benchmarking typically involves the following steps:
Collect internal compensation data from your current employees, including salary, benefits, and job descriptions.
Gather external market data from sources such as industry surveys, government databases, and compensation tools.
Match roles accurately, considering responsibilities, seniority, geographic location, and company size.
Analyse pay positioning, using metrics like compa-ratio to assess competitiveness of internal salaries.
Adjust compensation strategy, balancing fairness, market alignment, and budget constraints.
Attract and retain top talent: competitive pay packages help organisations stand out in tight job markets.
Ensure pay equity and fairness: salary benchmarking helps to identify and resolve hidden pay gaps within your workforce.
Enhance employee satisfaction: transparent and fair compensation builds trust and motivation.
Optimise budgets: data-driven benchmarking prevents overpaying or underpaying, leading to smarter compensation decisions.
Support growth and scalability: a standardised benchmarking process supports seamless pay adjustments as your organisation expands.
At Mauve Group, our salary benchmarking services offer a unique advantage:
Deep industry insight: we tap into comprehensive compensation data sources to deliver accurate and context-sensitive benchmarking.
Global perspective: whether you're hiring locally or internationally, we adjust data for cost of living, market norms, and regional trends.
Equity-driven approach: we help you build transparent, fair compensation structures that strengthen employee trust and retention.
Strategic alignment: our benchmarking aligns with your broader business goals – balancing competitiveness, budget discipline, and company culture.
Let Mauve Group guide your compensation strategy with salary benchmarking that’s precise, equitable, and growth-ready.
Employer of Record (EOR): a partner that legally employs your international staff and simplifies payroll, benefits, and compliance.
Global payroll: centralised payroll management for international teams, ensuring compliance across jurisdictions.
Compensation benchmarking: broader term that compares total compensation packages (including bonus and benefits) across the market.
Compa-ratio: a metric comparing an employee’s salary to the market midpoint, indicating pay competitiveness.
Total rewards strategy: a holistic approach that includes salary, benefits, equity, and workplace perks to attract and retain talent.