TL;DR:
In 2025, salary benchmarking matters more than ever before—because employees are more informed than ever before. From checking pay ranges using AI-powered search tools to browsing job listings on Indeed and Glassdoor, workers are increasingly informed and unafraid to ask tough questions about salary equity, fair compensation, and pay transparency laws.
Poor salary benchmarking creates problems that compound over time. When you rely on inaccurate or incomplete salary data, you risk several costly outcomes:
The stakes are higher because information travels faster. A single Glassdoor review or LinkedIn post about unfair compensation can reach hundreds of potential candidates and current employees within hours. Your compensation strategy needs to be defensible, transparent, and based on solid data.
Employers shouldn't use LinkedIn for salary benchmarking because its data is often unreliable and based on flawed collection methods. Platforms like LinkedIn and Indeed rely on crowdsourced, unverified estimates from users who may not have accurate information about total compensation packages. Additionally, some users might inflate or deflate salary figures for personal reasons.
The bigger problem is context. A "Marketing Manager" title can mean vastly different things depending on company size, industry, geographic location, and scope of responsibility. Popular salary sites rarely account for these critical variables with enough precision.
These platforms focus heavily on base salary while overlooking the total compensation picture. Benefits, retirement contributions, bonuses, and paid time off can add 20-30% to a position's true cost and value (according to the Bureau of Labor Statistics).
Benchmarking compensation requires a methodical, multi-source approach. It’s no longer about a quick Google search—HR teams and business leaders now rely on specialized tools and verified data to stay competitive. Here’s how to approach it effectively:
Start by combining insights from at least three to five trusted resources. Each provides a unique perspective, allowing for a more comprehensive analysis. Consider using:
These sources ensure you work with verified, job-specific information, rather than relying on incomplete or outdated data.
Compensation is influenced by several critical factors, including:
Tailoring your benchmarks to these variables provides a clearer, more accurate picture of market rates.
Don’t just focus on base salary—consider the full package. This includes:
Calculating total compensation can help you better understand how your offers stack up and create competitive packages, even if your base salary is on the lower end.
Compensation benchmarking isn’t just research—it’s a strategic cornerstone of effective people management. At PRemployer, we provide business owners with the reliable data and expert insights to make confident, informed decisions about employee compensation.
Our approach is to deliver practical, customized solutions that align with your business.
Accurate compensation benchmarking isn’t just about fair pay—it’s about making smart decisions to support your business goals while attracting and keeping talent.
Using reliable data instead of crowdsourced estimates reduces compliance risk, boosts employee satisfaction, and maximizes your compensation budget.
Need help reviewing your pay structure? Let’s talk. Our team can help you assess roles, retention goals, and market expectations to benchmark better for long-term success.