Why Should I Benchmark My Compensation Strategy?
This post briefly explains why benchmarking your organization's compensation strategy saves costs and increases ROI. Snapshots over time improve manager capacity and protect the organization from liability claims.
Emma Arcos
6/8/20251 min read
Image description above: On the map above, different headquarters may offer compensation packages that include different components. Some examples are: salary and cash contributions to deferred savings, fringe benefits such as insurance or reimbursements, and perks such as access to a company car or technology.
A compensation benchmark analysis is the process of comparing organizational pay strategies within a geographic area or sector. This supports your ability to afford top talent while remaining financially responsible. According to LinkedIn, losing talent costs 50–250% more than typical employer burden costs. That means that it would have been cheaper to leave a position empty than to fill it with someone who decides to leave before the employer expects.
Realize the benefits of completing this exercise with Abundance HR:
Establish your compensation framework strategy. How do you measure value?
Clarify your market strategy. How competitive is your package compared to similar positions elsewhere?
Identify your position. What are your options given your budget and strategic plan?
Leverage our people analytics expertise. How do you apply external benchmark findings to your internal case?
Distill realistic next steps. How can we help you implement changes to your compensation framework?
Create a communications plan. How can we construct a plan that addresses all stakeholder groups?
Abundance HR keeps this process simple, straightforward, and structured around your needs. Contact us today!