Compensation Benchmarking
PROBenchmark salaries and total compensation against market data using percentile analysis, job matching, peer group selection, and pay equity audits for strategic HR decisions.
Example Usage
Benchmark our Software Engineer role (Senior level) in San Francisco against current market data to determine if our $180k base salary is competitive. Our target is the 50th percentile. Include bonus and equity in the total compensation analysis.
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Suggested Customization
| Description | Default | Your Value |
|---|---|---|
| Market percentile target (25=below-market, 50=median, 75=above-market) | 50 | |
| How often to conduct full benchmarking reviews | Annual | |
| Number of external data sources to cross-validate | 2-3 | |
| Minimum job match accuracy percentage required | 80 | |
| Number of comparable organizations in peer group | 10-15 | |
| Whether to analyze total compensation (base + bonus + equity + benefits) | Yes |
Research Sources
This skill was built using research from these authoritative sources:
- Meridian Compensation Partners Best Practices Guide Comprehensive guide covering peer group selection, data quality, size adjustments, and executive compensation
- Mercer Salary Benchmarking Methodology Methodology guide on labor market data understanding, survey selection, and market pricing approaches
- Aon Compensation 101 - Market Benchmarking Foundational chapter on market reference points, compensation philosophy, and percentile positioning
- PayAnalytics Pay Equity Five-Step Process Guide on regression analysis methodology, job evaluation, and gap remediation
- PerformYard Compensation Benchmarking Guide Comprehensive guide covering role identification, peer group selection, and implementation workflows
- Figures HR Benchmarking Tools Comparison Comparison of top tools including Figures, Mercer, ADP, and Payscale with features and pricing
- Deel Compensation Management Tools Review Comprehensive tool review covering CompAnalyst, Payscale, Barley, Ravio, and CaptivateIQ
- AIHR Salary Benchmarking Guide HR professional guide to salary benchmarking methodology and best practices