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Benchmarking as a tool for determining pay
Over reliance can lead to a wrong estimation because of unreliable data.
Add BT as a preferred sourcePublished Tue, Jan 16, 2018 · 09:50 PM
CURRENT approaches to remuneration management mainly rest on "benchmarking" as a technique. Benchmarking in this context means matching what is done in the organisation to the practices of the market. The key assumptions of a benchmarking approach to remuneration are that there is an efficient market for people, and that the data used to determine the level of remuneration are robust and reliable.
The efficiency of the market
An efficient market in the context of benchmarking is one where there is:
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