Understanding the HR market

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Understanding the market

There is no absolute right about a pay or a way to people. Very much, it majorly reflect what your organization is about, but that is to be in the context of what's going on in the marketplace because ultimately, what you're offering to people, from a pay point of view, needs to be in alignment or better than what your competitors are offering. It's a competitive business, if you will, attracting, retaining the right talent. It's like any marketplace. You need information about what's going on in a marketplace in order to win in the marketplace.

Depending upon what kind of employee you're looking at, what kind of talent you're dealing with, there may be very different sources of information available about what people are paid, how they're paid and what you'll need to do to attract them. If you're in a pretty large corporation that has a sophisticated compensation department, they can go to vendors, buy salary data, tell you what other companies are paying, give you an idea of what you need to pay in order to be reasonably positioned in the market.

https://www.linkedin.com/learning/human-resources-pay-strategy/understanding-the-market