outsolve insights

Human Resources (HR) knows just how tough it can be to get compensation right. Between keeping your top performers happy, attracting new talent, staying compliant, and managing budgets, pay decisions can seem never-ending and overwhelming. That’s where salary benchmarking comes in. 

Let’s face it, compensation is usually the most critical component of a job offer, both for employers and prospective candidates. Particularly for employers, compensation can be tricky. Between staying competitive, promoting fairness, and attracting and retaining top talent, maintaining a strong and updated compensation strategy may feel like trying to hit a moving target. One moment your pay structure feels spot on, and then a competitor seemingly comes out of nowhere, with an offer that someone on your team or a prospective candidate can’t refuse. 

Setting salaries can feel like a guessing game. If you pay employees too little, they leave for better offers. If you pay too much, you strain your budget and create pay compression. That’s where compensation benchmarking comes in.