Market Pricing & Salary Benchmarking
Find the Right Pay for the Right Roles — Backed by Data
Market pricing (also referred to as compensation or salary benchmarking) provides competitive compensation data for job positions.
Compensation Resources has a robust on-site library of over 1,000 surveys across many industries. Our survey sources encompass for-profit and not-for-profit data. Critically, we only use empirical data.
Why Accurate Compensation Benchmarking Matters
Market pricing is a vital step in the salary administration process. Using numerous surveys for market pricing positions is key to accurately benchmarking positions.
How We Help: Market-Based Compensation Strategies
Our team reviews job descriptions to develop an understanding of the position and compare it to job summaries within the surveys. To establish a competitive market rate salary, we use multiple compensation surveys within our extensive research library, including confidential data sources.
Market pricing can be accomplished by collecting market rate salary data from published survey sources, which can be based on either geography or industry. It is important to utilize as many relevant sources as possible to get an accurate comparison. Each survey has an effective date; therefore, all data must be aged to a common date, utilizing a prorated percentage of the average merit increase award in the competitive market. Once all data is aged, multiple measures of central tendency should be calculated, such as the average, median, and weighted average, to determine the best estimate of the market value.
To conduct a market pricing study, it’s essential to understand the components of the job position and the competitive labor market (e.g., geography, industry, size) within which it competes.
To maintain competitiveness over time, organizations should perform market pricing analyses periodically.
Why Leading Organizations Trust Our Market Pricing Expertise
"We first engaged Compensation Resources in 2015, and they helped us establish a logical, systematic way of evaluating compensation. They helped us with our Salary Administration Policy (SAP), which has stood the test of time. The Compensation Resources team is professional, easy to work with, and knowledgeable."
Controller
Not-for-Profit Social Services
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Please contact us to learn more about how Compensation Resources can help your company with market pricing.