Determining whether employees are paid a fair and competitive wage requires more than just checking out a competitors job postings. Regular compensation benchmarking using a variety of validated, third-party sources are the best way to identify alignment to market rates, equity inconsistencies, wage compression issues, or gaps that may affect employee attraction or retention. The strongest compensation programs are those that are competitive, consistent, transparent, and aligned with the organization’s compensation philosophy and business goals.
To evaluate compensation, an organization should benchmark against factors including:
• Industry
Size of organization (revenue and headcount)
• Position education and experience requirements
Position responsibilities and outcomes
• Geographic factors
• Other compensable factors such as travel, budget authorization, shift, specialty skills/certifications
