Salary benchmarking is the process of comparing an individual's salary to the salaries of others in the same or similar position in order to determine whether the individual is being fairly compensated.
A salary benchmark is an effective tool used by employers to compare an employee's salary to others in similar positions within the same industry. By understanding how an employee's salary compares to others, employers can make more informed decisions about compensation, benefits, and other factors that impact an employee's total compensation package. Additionally, salary benchmarking can help employers better understand what salaries are being paid for similar positions in the marketplace, which can help them attract and retain top talent.