What is the best way to ensure the accuracy of salary benchmarking data?

Data Accuracy for salary benchmarking is the solid foundation. However, consider these additional pointers while positioning your CTC with respect to the industry standards: -Rely on multiple sources for benchmarking data. This can include industry reports, government statistics, and salary surveys. Cross-referencing data from various sources can improve accuracy. -Salary benchmarking data should be continuously monitored and updated to keep pace with market changes, economic conditions, and industry trends. Annual reviews are often the minimum requirement. -Conduct your own surveys within your industry and region if possible.

When defining your target market, use third part resources. There are lots of companies that can provide data to you based on company size, revenue and geographic location. That way when you go to market with your open position, you will be competitive.

Consider the scope of data available with your recruitment team. Make sure it covers the job roles, industries, and locations that match your specific talent market. Data should be as granular as possible for precise comparisons and be aware of potential bias in data sources.

My recommendation would be to check 3-5 outside resources on compensation data. That way you can have multiple sources to choose from and can make an educated decision. Also, it’s okay to check with several local recruiting firms and ask their opinions on what the market rate is for your opening.

When adjusting for variations, make sure to have a range in mind. Obviously there is budget limitations, but make sure you have some wiggle room when recruiting. There might be other factors such as inflation causing rates to increase.

I’m a huge fan of salary transparency. There is nothing worse that spending time writing a job description, posting a job and recruiting only to find out that you can’t afford the person that you need. Post the pay range on the job description. You will save everyone so much time!

Many companies work with an external agencies for salary benchmarking. While it is good, the partnership has to be also with the Talent team 1. Finalise the list of companies to benchmark with 2. Map the talents to the correct level in the hierarchy while the analysis happens 3. Go through atleast a year or two of hiring data, check where we have hired from, where we lost to 4. Analyse what percentage hike was given to attract such talent 5. Also analyse where we lost Talent to, what kind of compensation we lost talent to 6. Compare this data along with the Market data & the attrition data Agree upon what kind of Talent we want to chase, how much competitive we want to be, pros and cons of salary structure. Communicate & agree as a team

When companies are recruiting, they need to make sure and put their best foot forward to attract the best candidates. That means: streamlining the interview process, having a clear job description, making sure to make a competitive offer and setting a reasonable start date. Make sure to be engaging with high potential candidate all along the way and make sure they know you are highly interested in their candidacy.