We're aware of a global phishing scam impersonating employees via email, WhatsApp, and Telegram, but no PageGroup systems have been breached. Find out how to protect yourself
Browse our jobs and apply for your next role.
Reach out to us or discover some great insights that could help you fill your next vacancy.
PageGroup changes lives for people through creating opportunity to reach potential.
We find the best talent for our clients and match candidates to their ideal jobs.
Today’s workers are motivated by a range of factors, such as perks, benefits, and career advancement. But of them all, one element remains the most appealing: salary.
According to our Talent Trends report, over half of workers (54%) consider a higher salary to be essential when accepting or applying for a new role. Additionally, 34% of organizations found it difficult to hire in the last twelve months, with 40% citing matching salary expectations as their biggest challenge.
To put it simply, top talent comes at a price. So, if you want to attract and retain the best employees, knowing what to offer them is key. Keep reading to learn more about the importance of salary benchmarking for achieving your business objectives with thriving, well-paid professionals at the wheel.
Salary benchmarking, or compensation benchmarking, is a strategy employers use to determine what to pay an employee. The process involves collecting data from job descriptions to discover what other organizations are paying for similar roles in the same area and industry.
The practice reveals useful information about current market trends that employers should be aware of. Additionally, this data-driven approach to compensation ensures employers remain fair and impartial.
Employees don’t want to work for an organization notorious for unfair salaries—and they do their research. In our survey, over 40% of professionals reported updating their knowledge of salary industry trends several times a year.
When you forgo proper compensation research, you miss out on high-caliber candidates. Prioritizing salary benchmarking helps you maintain relevance with job seekers. Doing so also keeps your current workforce in positive spirits, reducing your turnover rate.
Human capital is arguably your most valuable asset—and budgeting for it is crucial. Conducting regular compensation research allows you to allocate accurate and competitive pay for roles. It also reveals whether you can afford to hire certain positions and adjust as necessary.
Our survey revealed 36% of employees are unhappy with their current salary. What’s more, over half (55%) plan to look for a new role in six months due to salary dissatisfaction. The importance of competitive compensation can’t be understated, especially in terms of appealing to and keeping top performers.
Our research says 63% of candidates are confident in their ability to negotiate salary. As an employer, you’ll be able to hold your own (and possibly achieve your target) if you’ve done your homework. Here’s how.
The first step is to identify the role and your requirements. This includes the position’s title, skillsets, and preferred experience. Don’t forget to factor in the role’s location and industry, which are essential to effective salary benchmarking.
Now for the nitty gritty. First, compile a list of your current positions and their corresponding compensation packages. This internal salary database will give you a better understanding of your organization, providing a solid ground for benchmarking.
Next, perform market research using credible sources. (For U.S. organizations, the U.S. Bureau of Labor Statistics is a free reliable resource.) At this stage, you can also conduct salary surveys or review competitors’ job descriptions.
Pro tip: as you begin benchmarking, identify gaps and whether you can fill them. For example, if you can afford to pay above the average, do so within reason. Your job description will automatically be more appealing than your competitors’.
Salary benchmarking can be a tedious, time-consuming process. To make matters more complicated, the ever-changing job market and economic factors make compensation research an ongoing task.
In these cases, salary guides are a must-have addition to your toolkit. Our Michael Page Salary Guides already did the work for you, featuring up-to-date salary data for roles in various industries. Use them to create competitive offers for new employees. We also recommend referencing them throughout the year to keep your all-star employees loyal.
Download the Michael Page Salary Guide for free
Once you’ve conducted salary research, it’s time to put what you’ve learned into practice. Updated salary information will prove useful in performance reviews and improve alignment with employees.
Have an open role? With updated salary data up your sleeve, you can compel the most qualified candidates to choose your organization.
If you want to ensure a seamless hiring process, enlisting the help of experts can go a long way. At Michael Page, our specialized recruitment consultants stay updated on the latest data to efficiently handle salary conversations with candidates. Request a call back to get started.
