en

Services

Leading employers across the US trust us to deliver fast, efficient hiring solutions that are tailored to their exact requirements. Browse our range of bespoke services and resources.

Read more
Jobs

Our industry specialists will listen to your aspirations and share your story with the most prestigious organisations in the US. Together, let’s write the next chapter of your career.

See all jobs
Candidates

Together, we’ll map out career-defining, life-changing pathways to achieve your career ambitions. Browse our range of services, advice, and resources.

Learn more
Services

Leading employers across the US trust us to deliver fast, efficient hiring solutions that are tailored to their exact requirements. Browse our range of bespoke services and resources.

Read more
About Robert Walters United States

For us, recruitment is more than just a job. We understand that behind every opportunity is the chance to make a difference in people's lives.

Learn more

Work for us

Our people are the difference. Hear stories from our people to learn more about a career at Robert Walters United States.

Learn more

Salary benchmarking vital for success

5 minutes read

Salary benchmarking allows companies to establish whether their senior executives’ remuneration packages are in line with the rest of the market. Here, we explore it in more detail.

Why do firms need a salary benchmarking service?

In some cases, they don’t want to risk losing their top executives to offers of better pay packages from competitors. In others, they want to be able to prove to their shareholders in black and white that their senior staff provide value for money. Either way, it can be vitally important to the success of an organisation.

But getting this information can be difficult. At the most senior level, where there are simply fewer roles to compare, it is not widely available.

Salary benchmarking gives a complete breakdown of the compensation package allowing companies to compare salary and benefits available within specific sectors and named companies. So, overall it is a much more exact science than, say, a salary survey.

Gaining access to salary information

For listed businesses, the majority of this information is available publicly within annual company reports. But organisations will typically not have the required resources to analyse the data in the most useful way. Enlisting a third party, such as Robert Walters, to carry out this work can therefore save a lot of time and effort.

What is involved in a salary benchmarking report?

Typically, it will provide a list by company size, sector and revenue. It will also detail the package earned in terms of the value of the basic salary, cash bonus, share bonus, long term incentive plan (LTIPs) and pension of the position in question (be it CEO, COO, CFO or FD).

Establishing sector differences

Pay varies widely depending by sector.  In one of our recent reports, two specific businesses from within the scientific & instruments and manufacturing industries, with similar revenues, paid their CEOs basic salaries of £288,000 and £175,000 respectively. Salary benchmarking allows organisations to get an idea of these differences.

Salary benchmarking allows companies to establish whether their senior executives’ remuneration packages are in line with the rest of the market.

Establishing compensation breakdown differences

The value of different components of the package can differ greatly. Salary benchmarking considers all aspects of remuneration to ensure it gives an accurate reflection of the take-home package.

Comparing with other businesses

Salary benchmarking allows companies to make comparisons of these figures between a large number of other businesses. As part of the analysis, the research can determine the overall mean, as well as lower and upper quartiles, of the value of each component of directors’ overall compensation packages. These gives a clear indication of how their directors’ pay compares with the market.

Learn more about our compensation and benefits benchmarking service.

Request a market intelligence quote
Please complete the details about the hiring intelligence you require to assist us with building a quote for you. Someone from the team will be in touch to deliver your quote.

Share this article

Related content

Submit a vacancy
Salary survey
Hiring advice
Get in touch

Find out more by contacting one of our specialist recruitment consultants

Related content

View All
Recruitment market analysis: using market insights to stay ahead in hiring

In today's dynamic job market, staying informed about industry trends, talent supply, and competitor strategies is crucial for making effective hiring decisions. This is where recruitment market analysis comes in. By leveraging market insights, you can adapt to changes in the hiring landscape, antic

Read More
Unlocking recruitment success with talent market intelligence

In the fast-paced world of recruitment, having access to accurate, real-time data about the talent market can make all the difference in sourcing top candidates. This is where talent market intelligence comes into play. By leveraging comprehensive insights about the job market, candidate behaviour,

Read More
What is market intelligence in recruitment and why does it matter?

In the highly competitive world of recruitment, having a strategic edge is essential to securing top talent. This is where market intelligence comes into play, providing hiring managers and recruitment professionals with data-driven insights that empower informed decisions on sourcing, hiring, and r

Read More

I'm Robert Walters Are you?

Come join our global team of creative thinkers, problem solvers and game changers. We offer accelerated career progression, a dynamic culture and expert training.