en

Services

The UK's leading employers trust us to deliver fast, efficient talent solutions that are tailored to their exact requirements. Browse our range of bespoke services and resources.

Read more
Jobs

Let our industry specialists listen to your aspirations and present your story to the most esteemed organisations in the UK, as we collaborate to write the next chapter of your successful career.

See all jobs
Services

The UK's leading employers trust us to deliver fast, efficient talent solutions that are tailored to their exact requirements. Browse our range of bespoke services and resources.

Read more
About Robert Walters UK

Since our establishment in 1985, our belief remains the same: Building strong relationships with people is vital in a successful partnership.

Learn more

Work for us

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

Learn more

The power of compensation and benefits benchmarking in recruitment

10 minutes read

In today’s competitive job market, offering the right compensation and benefits is essential to attract and retain top talent. Candidates are increasingly comparing job offers not only by salary but also by the benefits on offer and overall work-life balance. As a business, it’s critical to make sure your offerings are competitive, which is where compensation and benefits benchmarking comes in. By regularly comparing your packages to industry standards, you can make data-driven decisions that help you stand out from competitors and secure the best talent.

 

What is compensation and benefits benchmarking?

 

Compensation and benefits benchmarking involves gathering and analysing data on how other companies in your industry or region compensate their employees. This includes base salary, bonuses, and benefits such as healthcare, retirement plans, and paid leave. Benchmarking helps you identify gaps in your offerings and make strategic adjustments to stay competitive.

In recruitment, benchmarking is especially valuable as candidates often come into interviews with a clear idea of what similar roles are offering. If your compensation and benefits aren’t aligned with the market, you could lose top candidates to competitors offering more attractive packages.

 

Why compensation and benefits benchmarking matters in recruitment

 

1.      Attracts top talent

In sectors facing skill shortages, a competitive salary and benefits package is essential to attract top candidates. Market benchmarking shows you what others are offering, positioning your company as an appealing option for skilled professionals weighing up multiple job offers.

 

2.      Reduces offer rejection rates

One of the main reasons job offers are rejected is due to an unsatisfactory compensation package. Without effective benchmarking, you may make offers that fall short of candidate expectations. By regularly reviewing and adjusting your compensation, you can reduce the chances of losing candidates to other employers.

 

3.      Retains current employees

Benchmarking isn’t just about attracting new hires—it’s also key to retaining your current employees. If your salary and benefits fall below industry standards, your employees may look elsewhere for better opportunities. Keeping your compensation packages competitive boosts employee satisfaction and reduces turnover.

 

4.      Helps navigate economic and market changes

The job market is constantly evolving, with shifts in salary and benefits trends influenced by factors like inflation, new technology, and industry demands. For instance, the rise of remote work has prompted many companies to offer more flexible benefits. Compensation and benefits benchmarking keeps you informed about these trends so you can adjust your offerings and remain competitive in times of economic uncertainty.

 

Key components of compensation and benefits benchmarking

 

1.      Salary benchmarking

Salary benchmarking allows you to compare wages for specific roles in your industry or region. With this data, you’ll know the average market rate for a position, which can guide salary negotiations and internal pay reviews, ensuring fairness and transparency.

 

2.      Benefits benchmarking

Candidates today expect more than just a competitive salary—they look for benefits that enhance work-life balance. Benefits benchmarking helps you assess how your healthcare, retirement contributions, paid leave, and other perks stack up against your competitors, giving you a clear picture of what candidates value most.

 

3.      Bonus and incentive comparisons

Offering bonuses and incentives can give you an edge over competitors. By benchmarking bonuses and performance incentives, you’ll know what other companies are offering, enabling you to craft compelling and competitive offers for candidates.

 

How benchmarking improves your recruitment strategy

 

Compensation and benefits benchmarking can significantly impact your recruitment success:

  • Improved candidate experience: Offering competitive packages ensures candidates feel valued, which enhances your employer brand and makes the hiring process smoother.
  • Data-driven decision-making: With up-to-date benchmarking data, you can make informed compensation decisions that align with real-time market trends.
  • Competitive edge: In a fast-moving job market, benchmarking enables you to stay ahead by adjusting salaries and benefits in response to industry shifts, making your business more attractive to top talent.

 

In conclusion

Attracting and retaining talent takes more than competitive salaries; a comprehensive benefits package that meets the needs of today’s workforce is also essential. By regularly conducting compensation and benefits benchmarking, you’ll ensure your business remains competitive, appeals to high-quality candidates, and retains your most valuable employees.

 

Ready to elevate your recruitment strategy? Discover how our benchmarking services can help you attract and retain the best talent. Get in touch today or learn more about our market intelligence services.

Contact us to discuss your Market Intelligence requirements

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
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
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

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.