1Research Market Rates
Use multiple sources: salary surveys, job boards, industry reports, and tools like Glassdoor and LinkedIn Salary. Focus on data from your specific market, industry, and company size.
2Consider Total Compensation
Salary is just one part of the package. Factor in benefits, equity, bonuses, professional development, and work flexibility. Many candidates will accept lower base pay for better overall packages.
3Create Salary Bands
Establish ranges for each role level. A typical band spans 20-30% from minimum to maximum. This allows room for negotiation and growth within the role.
4Account for Location
Adjust salaries based on cost of living. Major cities like Toronto, Vancouver, NYC, and London command 15-30% premiums. Consider location-based pay for remote roles.
5Review and Adjust Annually
Market rates change quickly. Review your salary bands at least annually and adjust for inflation, market shifts, and internal equity.