What Does “Competitive Pay” Really Mean?

It’s no secret that top talent expects to be paid top dollar. Even with a developed recruiting program, a strong, positive culture and a comprehensive benefits package, it will be difficult for your company to attract and retain the best employees without a competitive pay policy.

What is “competitive pay”?

Most HR professionals suggest that being competitive with compensation means paying an average of 5-10 percent more or less than the market average pay for a job or a group of jobs.

What is the market average rate?

The market average rate for a job is the average pay for a position. By ordering or engaging in pay surveys, you can study what market average pay is nationally, regionally and locally for various positions, and determine whether your pay is competitive.

Click here for more information on wage statistics and pay averages.

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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.