Workday Customers, take the next step in your skills efforts with Free Limited Access to Talent Transform.

Learn more

Salary Benchmarking for Recruitment and Retention

collage of woman writing

What is salary benchmarking?

Salary benchmarking, also referred to as compensation benchmarking, is a process where companies compare their job titles, job descriptions, and pay ranges to similar jobs at other companies in order to identify the market rate for each position. Utilizing benchmark salary data ensures companies are able to attract and retain talent with competitive salaries. 

Benefits of Salary Benchmarking:

CheckmarkUnderstand how to evaluate internal pay scales
CheckmarkRespond to economic factors influencing wages
CheckmarkEnhance employee engagement and retention
CheckmarkAttract candidates with the right skills and experience
CheckmarkBeat the competition with competitive pay rates

4 questions to answer when creating a salary benchmarking plan:

1. Does your company perform regular assessments for employee skills and development?


2. What standard is in place to ensure HR is meeting state and federal regulations? 


3. How long has it been since your company has aligned salaries to market standards?


4. Who are the top companies I’m competing against and what are their pay scales? 

wage graph

What information do you need to begin compensation benchmarking at your organization?

01/04

New York City
Woman working on Laptop
Happy man shaking hands
happy woman with glasses
Customer Success Story

JB Hunt, a large trucking and logistics company

needed a way to capture current recruiting wages efficiently within their markets. In order to stay an industry leader, they required bid perspective and pay accuracy. With Lightcast’s expert guidance, they saw success in recruiting by changing their pay bands. JB Hunt was able to successfully hire 18,000 new truck drivers in 2022 with a 50% retention rate (far out-pacing the industry average turnover of 102%).

trucking stats

Lightcast is helping businesses create competitive salaries.

dental one
A national dental company

used Lightcast compensation data to fill 75% of open jobs in a tough market, making almost 1,000 hires in a single year by relocating talent and updating compensation based on local data.

tree care company
A multinational tree care and landscaping company

needed insight into competitor compensation rates. They connected with Lightcast experts to get a deeper understanding of salary analysis. Digging into niche markets, they were able to use Lightcast Occupation Taxonomy to cluster “like” roles for their compensation study.

See what you can do with Lightcast.

Get a free sample report with the latest compensation data.

Salary benchmarking data allows human resource professionals to create competitive salaries to attract and retain talent.


wide image of high rise office

Companies who measure their wage rates against market data will attract higher quality candidates. Continuously monitoring internal wage rates is just as important to retaining workers in a tight labor market. Companies need to make sure the salary range for their specific roles align with market standards to ensure they don’t lose valuable talent to their competition. Understanding the latest wage and workforce trends is a crucial part of a competitive compensation strategy. In order to make the right compensation decisions, you need salary benchmarking tools with the right data.

Solutions for Salary Benchmarking

compare jobs
Understand what other companies are paying for similar jobs.

Access current advertised salaries being offered by companies who are competing for the same talent to offer competitive salaries. 

briefcase icon
Apply skills and experience levels to salary decisions.

Every skill has value attached. Specific skill sets along with required experience and other qualifications inform wage observations.

icon of a flag
Compare salaries relating to specific job titles in multiple markets.

Compare internal wages for the same job title across regions to set expectations when entering a new market or figure out why you might be struggling in a current one.

world
Consider historical salary information based on geographic location.

Historical wage trends provide helpful context for evaluating prevailing wages and provide additional guidance for strategic location decisions. 

Learn more about salary benchmarking.

Schedule a time to talk with a member of our team. We'd love to show you how Lightcast can help you make informed compensation decisions.

book a demo