In establishing pay grades, what’s the most reliable way to obtain market data for comparable positions?
Benchmark Positions Benchmark positions, meaning jobs with similar duties, are the best sources for comparing salaries across positions. For some positions, such as an accountant, it’s relatively easy to find an average range of salaries. For less clearly established positions, like Scrum Master, you may need to write out a position’s required duties and then […]
Benchmark Positions
Benchmark positions, meaning jobs with similar duties, are the best sources for comparing salaries across positions. For some positions, such as an accountant, it’s relatively easy to find an average range of salaries.
For less clearly established positions, like Scrum Master, you may need to write out a position’s required duties and then search for jobs that have the most comparable set of requirements.
Additional Sources
Once you’ve found a set of comparable positions, the U.S. Bureau of Labor Statistics (BLS) offers comprehensive wage data on a large number of positions. Check out surveys conducted by professional associations, like the Center for Association Leadership, to get a second opinion.
Zenefits also offers a Salary Benchmarking tool through our HR Advisor service where you can get a compensation report either annually or by the hour in every state relating to over 800 positions. You can sign up for this service to gain access to the Salary Benchmarking tool through the HR Advisor app.
Final Tips
Due to the number of factors involved, including an employee’s experience, education, job location, etc., it’s best to compare multiple sources when establishing a pay grade for a position that’s new to your company.
Helpful Links:
The Art of Setting Pay – SHRM.org– A comprehensive guide to best practices.
Choosing a Pay Scale that Works for Your Practice – AAFP.org
