Benchmarking is a skill that every human resource practitioner involved in the compensation process should perform efficiently and correctly. Accurate benchmarking is the foundation of appropriate salary assessments and market comparisons. If one benches internal positions incorrectly it may result in selecting the wrong market salary data and setting an inappropriate salary which in turn creates employee dissatisfaction and a higher turn over rate. Clearly, this is a skill that impacts your organization.

The definition of benchmarking for salary survey purposes is “matching an internal job to an external job of similar content”. The goal is to match each job being performed in your company to the survey benchmark job that most closely resembles the essential functions of that job. Once this is accomplished one can then review the market salary data to determine market rates.

>> How To establish effective benchmarks >>

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