When I make a new job offer, what is the best way to determine the new employee’s base pay?
– Controller, Retail Company
There are several ways to source data for compensation and salary benchmarking. Three places we recommend to look are:
- Job Boards – What other companies are paying is typically found on these sites.
- Headhunters – Asking your local employment agency is a great way to learn more about the competitive landscape.
- Look at the resumes – Candidates will sometimes voluntarily include salary requirements when submitting a resume or application.
Using a combination of the above will yield a well rounded set of benchmarking data.
However, employers are cautioned against requesting salary history information from candidates, as an increasing number of states and municipalities are banning such inquiries during the interview process.
In Connecticut, for example “employers cannot directly ask an employee about previous salary history, and employers cannot forbid an employee from inquiring about the wages of employees within the same company or organization.”
For more on Compensation and Salary Benchmarking, please click here.