What are the best practices for salary research and benchmarking?

Whether you are looking for a new job, negotiating a raise, or planning your career path, knowing how to research and benchmark your salary is a valuable skill. Salary research and benchmarking can help you understand your worth in the market, compare different roles and industries, and make informed decisions about your compensation. In this article, you will learn some of the best practices for salary research and benchmarking, and how to use them effectively.

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1 Use multiple sources

When researching and benchmarking salaries, one of the best practices is to use multiple sources of data. Doing so can provide a more comprehensive and realistic picture of the salary range and distribution for your role, industry, and location. Sources such as online salary databases and calculators, professional associations and industry reports, and networking and informational interviews can all be useful. These sources may have different methods of collecting, analyzing, and presenting salary information, but they all offer valuable insights into average, median, or percentile figures for various job titles and locations. They can also provide data on the salary trends, outlook, and benchmarks for different occupations and sectors. Furthermore, networking and informational interviews can give you personalized data on salary expectations, negotiation strategies, and compensation packages. Ultimately, using multiple sources can help you get a better understanding of the market as well as build relationships with potential employers or collaborators.

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Andy Roads

Your Partner in Culture-First Executive Searches | Executive Recruitment Specialist
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Live market data. Interview candidates and ask! It's the most accurate and up to date method we've found. We use third party aggregators and they're accurate but not perfect.

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2 Adjust for variables

Adjusting for variables is a best practice for salary research and benchmarking, as these factors influence the amount a job pays. Variables include the location, company size, industry sector, experience level, education level, skill set, and performance. To adjust for these variables, you can use a cost of living calculator to compare the cost of living between different cities or regions and estimate how much you need to earn to maintain your lifestyle or achieve your financial goals in a different location. Additionally, you can use a company size or industry sector multiplier to adjust salary data for the impact of the company size or industry sector on the pay scale. Lastly, you can use an experience, education, or skill level modifier to adjust salary data for the effect of the experience, education, or skill level on the pay rate. By adjusting for these variables, you can get a more accurate and relevant comparison of salary data from different sources and avoid overestimating or underestimating your value.

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3 Validate and update your data

A final best practice for salary research and benchmarking is to validate and update your data regularly. This means confirming that the salary data you have collected is accurate, reliable, and reflective of current market conditions. You can do this by comparing and cross-referencing your data from different sources to look for any inconsistencies, discrepancies, or anomalies. Additionally, you should review and revise your data based on feedback, experience, or outcome. Furthermore, you should update and expand your data as you learn more about your role, industry, or location. By validating and updating your data regularly, you can avoid using outdated or misleading information that could undermine your credibility.

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Caro Ritsma

Hoger salaris | hoger tarief | met de aanpak die bij jou past
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It's always good to start with databases to establish a benchmark for your salary. However, refinement is needed within this and the real golden nuggets for this can be found in your network: colleagues, former colleagues and others who know you and/or your work well. Don't ask them what they earn, but present your CV and job profile and ask: what do you think I should earn in this position? Choose your advisors carefully: avoid people who do not want you to receive a higher salary or who tend to be people-pleasers.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best practices for salary research and benchmarking?

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2

3

4

1 Use multiple sources

2 Adjust for variables

3 Validate and update your data

4 Here’s what else to consider

Career Development Coaching

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What are the best practices for salary research and benchmarking?

1

2

3

4

1 Use multiple sources

2 Adjust for variables

3 Validate and update your data

4 Here’s what else to consider

Career Development Coaching

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