Collect data from several sources for jobs that match yours in content, not just title, then derive a range with a minimum, median and maximum. The usual sources are salary surveys, job ads that state pay, recruitment agencies and candidates' expectations in interviews.
Step by step
- 1
Write down the job content first
Responsibilities, team size and required experience, because jobs are compared by content, not by title.
- 2
Define the comparison market
City, sector and company size, since pay for the same job differs across them.
- 3
Collect from several sources
A salary survey from a reliable provider if available, job ads, recruitment agencies, candidates' expectations, and the reasons offers were declined when pay was one of them.
- 4
Use one definition
Convert every figure to monthly or annual gross on the same definition, and separate basic pay, allowances, variable pay and benefits.
- 5
Derive the range
Sort the figures and use the median rather than the average so outliers do not distort it, then decide where your company stands against the market.
- 6
Update the data regularly
At least once a year, and before opening a hard-to-fill role.
A common mistake is relying on a single figure heard from a candidate or a friend. One figure is a single case, and a range from several sources is what supports a decision.
- average salary for a job in the market
- compare company salaries with the market