Competitive pay is defined as an employer offering a salary that is equal to or exceeds the industry standard for similar jobs in the same geographical area. Competitive pay is essential when trying to find the best talent to add to your team. It is important to stay relevant to your competition and offer the best pay and benefits available to current and future employees. Learn more about how utilizing competitive pay can be beneficial for your business below.

How to Price Jobs Competitively 

When structuring a compensation and benefits package for a potential open role it is important to follow these tips to ensure you are pricing jobs competitively. 

  • Research pay structures 
  • Decide how you will determine raises 
  • Practice regular benchmarking
  • Communicate with employees
  • Advertise with job postings 

Researching Pay Structures

When trying to stay competitive it is important to have insider info on your competitors. Start with ballparking a range of salaries you think is fair for roles you are trying to fill, but keep in mind that employees may negotiate their pay and benefits, so it is important to leave a little wiggle room. You can gain access to this information using comprehensive data from WageScape. WageScape shows you what’s happening with wages right now – for any job, in any location. This information is critical for attracting and retaining talent and for setting strategies for recruiting, pay, and growth. Using pay data will help you keep up with the competition. Salary surveys are also a great way to gain insight on compensation rates, but  WageScape data can supplement salary surveys since WageScape uses data from public-facing sources This means you can see data on individual jobs and companies with no lag time.

Decide how you will Determine Raises

It is important that employees are compensated for their experience over time to make them feel valued, respected, and paid a living wage for their role. It is important to determine how raises will be given whether it will be based on seniority, performance, quarterly or yearly.

Practice Regular Benchmarking

Recognizing your current employees and their talents. It is important to evaluate your employee’s current salaries and compare it to the industry standard. Compare their salaries with their job responsibilities to ensure that they are regularly compensated for their responsibility and skills that are utilized in their roles.

Communicate with Employees

Transparency with employees is a great tool for determining salaries. Communicate with employees goals for short-term and long-term pay. This helps employees feel respected, valued, and motivated to work. Explain the pay structure to newer employees you are bringing on board, and also regularly update your competitive pay policy.

Advertise with Job Postings

When writing your job postings make the listing attractive by putting a firm salary in the listing and mention that your company frequently offers competitive pay and benefits. This will definitely attract qualified candidates. 

Competitive pay is an incredible way to find and attract the right talent. By following the five simple steps above, you can put together a great compensation package. Utilizing pay data is among one of the most important steps, so you can have insider info on your market and the competition. Check out all WageScape has to offer. WageScape offers the only source of next-generation compensation intelligence designed to provide the insights needed in today’s fast-moving, hyper-competitive talent market. Learn more today!