Salary benchmarking is the process of obtaining information regarding pay and benefits for multiple companies.
This then allows businesses to compare the rate of pay offered for the same role across competing companies. From this information, businesses can then calculate the average salary for specific roles within their company. This is sometimes referred to as a salary review.
Salary benchmarking is an important process within businesses as it ensures employees are being paid appropriately and creates a competitive job market, but what are the benefits of salary benchmarking?