Choosing the Right Data Sources for Salary Benchmarking: A Guide for Employers

May 30, 2025

Constructing accurate and competitive salary bands is no small task, and it all starts with one key decision: selecting the right data sources. The balance of scope, reliability, and cost is crucial to ensure you’re working with actionable insights that support your compensation strategy. In this blog, we’ll guide you through the key considerations for choosing primary and secondary data sources, and why the right approach can make all the difference.

Why Choosing the Right Data Source Matters

A reliable data source is the foundation for setting fair, competitive, and transparent salary benchmarks. However, there’s no “one-size-fits-all” solution. Factors like your company’s roles, locations, and industry-specific needs often require a tailored approach. Understanding the options available and their trade-offs will help you navigate this critical step.

 

Primary Data Sources: The Backbone of Your Salary Strategy

Primary data sources, often referred to as “Give to Get” salary benchmarking providers, collect and validate compensation data directly from organisations. These sources provide robust and standardised benchmarks, ensuring consistent comparisons across roles, industries, and locations.
 

 

Key Features of Primary Data Sources:

  1. Reliability: Data is contributed by companies and standardised through levelling frameworks.
  2. Customisation: Advanced filters enable detailed comparisons based on industry, size, geography, and more.
  3. Comprehensiveness: Providers like Radford, Mercer, and Pave cover a wide range of roles and locations.
 

 

Questions to Ask Providers:

  1. Do they have data for all roles and locations you need?
  2. What filters are available to customise benchmarks?
  3. How frequently is the data updated?
  4. Do they include insights on bonuses, equity, or incentives?
 
These questions help ensure that the data aligns with your specific needs and provides actionable insights.
 

Secondary Data Sources: Filling the Gaps

While primary sources are essential, they might not always cover every niche role, location, or emerging trend. This is where secondary sources come in. These include job boards, salary scraping platforms, local recruitment surveys, and insights from your own recruitment team.
 

 

Pros of Secondary Sources:

  1. Can help address blind spots in primary data.
  2. Often free or lower-cost options.
  3. Provides insights into candidate expectations in real-time.
 
Cons to Consider:
  1. Crowdsourced data lacks standardisation and verification.
  2. Sample bias can distort the results.
  3. Limited details may make comparisons less precise.
 
When used thoughtfully, secondary sources can complement your primary data, adding depth and context to your benchmarks.

 

The Role of Filters in Customising Your Data

Filters are critical in refining your benchmarking data to match your unique needs. For instance, filters like industry, company size, geographic location, and job levels ensure that the data is both relevant and actionable. However, be mindful of trade-offs—using too many filters simultaneously can lead to sparse or incomplete data.

Pro Tip: Request a sample report from providers to validate their filtering capabilities before committing.

Why Investing in Data Sources Pays Off

High-quality salary data isn’t free, but the investment pays dividends. Reliable benchmarks build trust and credibility with employees, ensuring that your compensation practices are both competitive and transparent. The cost of primary data sources pales in comparison to the expenses of losing valuable talent due to weak or misinformed salary practices.

Final Thoughts

Your data sources should guide—not dictate—your salary strategy. Use them as a foundation to create pay structures that reflect your company’s unique culture, vision, and goals. Salary benchmarks are just one piece of the puzzle; factors like benefits, equity, and career development opportunities also play a critical role in attracting and retaining top talent.
Ready to take control of your compensation strategy? Let’s build salary bands that resonate with your team and set you apart in the market.

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