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What are benchmark positions
Benchmark positions (also called benchmark jobs) are roles used as standard reference points to
compare pay and job content against the external labor market and within an organization's pay
structure.(il(21
Core definition
® Benchmark positions are jobs with duties and responsibilities that are common and consistent
across many organizations, so they can be reliably compared. 3 4 5
® They have widely available, good -quality market pay data (from salary surveys), which makes them
suitable anchors for compensation decisions.[6]f31f11
How benchmark positions are used
® Employers' "market price" benchmark positions by matching them to similar roles in salary surveys
to see what other organizations pay for those jobs.jobs.U7 181111
® The resulting market rates help set salary grades and ranges and are then used to align pay for
related, non -benchmark jobs above, below, or comparable to them. 3 1
Typical characteristics
® Standardized job content: The main responsibilities, qualifications, and level are clearly defined and
similar from one employer to another. 4 5 3
® Broad representation: They are common roles (for example, HR Specialist, Project Manager, Sales
Manager) that exist in many organizations and appear frequently in surveys. 9 1
Why benchmark positions matter
® They help organizations ensure external competitiveness by checking if their pay is in line with the
market for key roles.111 71
® They support internal equity, because once benchmark jobs are correctly placed in the pay
structure, related jobs can be slotted around them more fairly and consistently,1 z
1. hUps:./.Zwww. nfD. co m/ insights /be nchmark-and-SlOt-D OS itio ns-to-determi ne-fair-compensation/
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7. httDs:/ www.adD.com/resources,larticles-and-insights/articl,es/c/compensation-benchmarking.asp
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u,ubli.ca.tions,/workSDa,n-.dailv/comDen benchmarkine-th
11. httDs:llhr.web.cern.ch/benchmark-fobs
12. htt-os:./.Icarta.comll,e,arnl,startups/compensation/benchmarkingt
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17. -benchmarkin
18. https:,/.Ilightcast.io/how-we-hell2/enterDriselsalary-benchmarking