In today’s competitive business landscape, getting pay structures right is more than just a financial task—it’s a strategic necessity. Salary benchmarking is how we make sure that what you offer your team is not only fair and market-related but also aligned with the real complexity of the work being done. At HRTorQue, we use a thoughtful process that blends internal clarity with external data, helping businesses build transparent, competitive, and future-proof compensation frameworks.
Getting the Basics Right: Understanding the Role
Before we begin any benchmarking, it’s critical that we understand the role as it exists within your organization. That means looking at who the job reports to, what its key responsibilities are, and what qualifications or experience are typically required. We take the time to ensure we’re benchmarking based on the actual nature and demands of the job—not just its title. This helps avoid misleading comparisons and ensures that any data we gather from the market is truly relevant.
What the Market Says: Using External Data Wisely
Once we’re confident about the role, we turn to market data. We don’t rely on a single source—instead, we pull information from a range of well-known platforms like Payscale, Talent.com, SalaryExpert, Plane.com, Indeed, and Jobicy.com. This gives us a more rounded view of where salaries currently sit across different levels of experience. We look at monthly and annual salaries for entry-level, median, and experienced professionals, and examine how these progress as people grow in their roles.
Connecting the Dots: Mapping Your Positions to the Market
Next, we map your existing team’s roles to these external benchmarks. This allows us to see where current salaries fall within the market range. It also highlights any discrepancies—like team members who are paid below entry level or well above market without a clear rationale. This insight is crucial for identifying pay compression, budget misalignment, or opportunities for strategic salary adjustments.
Creating a Framework: Salary Ranges That Flex with Your Team
With market data in hand, we build structured but flexible salary bands. These bands are usually defined using three quartiles:
- The lower quartile (M25) represents entry-level salaries or developing talent.
- The median (M50) reflects the market average for someone performing solidly in the role.
- The upper quartile (M75) is reserved for highly experienced or top-performing individuals.
These ranges provide space for people to grow in their roles and give your business a framework for performance-based increases, internal promotions, and future planning.
Bringing Structure: Using Paterson Grading to Anchor Pay
To make sure that salaries are consistent with the complexity of each job, we use the Paterson Grading framework. This system looks at the level of decision-making, accountability, and overall impact a role has in the organization. Roles are graded (for example, C4, D2, E4), and each grade is linked to a salary band. This adds consistency to your structure and helps ensure that roles with similar demands are treated equally—across departments and levels.
Conclusion
Whether you’re hiring for a new position, reviewing your entire payroll structure, or planning your future talent strategy, salary benchmarking provides a strong foundation. Our approach ensures you remain competitive, fair, and aligned with market expectations. More than just compliance, this process is about building trust—with your employees and with the future of your business.
Need help benchmarking your team? We’d love to show you how we can help.