JOURNAL ARTICLE

Why Your Organization Should Use Salary Benchmarking.

  • Published In: Harvard Business Review Digital Articles, 2023. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Cullen, Zoë B.; Shengwu Li; Perez-Truglia, Ricardo; Schaefer, Annemarie; Weiss, Brent 3 of 3

Abstract

The article discusses the importance of using salary benchmarking in organizations to establish fair compensation and improve employee retention. It explains that salary benchmarking involves using aggregated market data to determine competitive pay rates. The article presents a theoretical model and empirical evidence to support the effectiveness of salary benchmarking in influencing pay-setting decisions and causing salaries to converge across companies. It also provides information on different sources of salary benchmarks and offers tips for using them effectively. Overall, the article highlights the benefits of salary benchmarking in closing the pay gap and improving retention and payroll costs. [Extracted from the article]

Additional Information

  • Source:Harvard Business Review Digital Articles. 2023/10, p1
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • Accession Number:172996943
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