Salary Benchmarking for Recruitment and Retention
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:
Understand how to evaluate internal pay scales
Respond to economic factors influencing wages
Enhance employee engagement and retention
Attract candidates with the right skills and experience
Beat the competition with competitive pay rates
4 questions to answer when creating a salary benchmarking plan:
Does your company perform regular assessments for employee skills and development?
What standard is in place to ensure HR is meeting state and federal regulations?
How long has it been since your company has aligned salaries to market standards?
Who are the top companies you're competing against and what are their pay scales?
What information do you need to begin compensation benchmarking at your organization?
Understand pay rates in your market.
Access market data to see where your pay rates stack up. Government data and advertised wage data give you a holistic look at compensation throughout your markets. If your pay rate falls in a lower percentile, consider raising your wages in order to find top talent and hire them quickly.
JB Hunt, a large trucking and logistics company
18K
Drivers hired
50%
Retention rate
Lightcast is helping businesses create competitive salaries.
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.
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.
Find the Right Solution
API
Integrate Lightcast compensation data into your hiring system and strategy to find the right talent at the right price.
Software Solutions
Use actionable wage data to inform talent acquisition strategies, optimize job postings, and target the right markets.
Workforce Consulting
Optimize your compensation benchmarking process with custom data sets, personalized analysis, and targeted recommendations.
Salary benchmarking data allows human resource professionals to create competitive salaries to attract and retain talent.
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
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.
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.
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.
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.
