8 Steps: How Salary Surveys Can Support Your Go-to-Market Strategy in 2024

Taisiia Mliuzan
04 March 2024

Entering a new market is a complex and challenging endeavor for any business, particularly in the dynamic and competitive landscape of today’s global economy. A critical, yet often overlooked, tool in this process is the use of salary surveys.

By utilizing salary benchmarking tools and salary expert guides, you can effectively compare benchmark salaries and guarantee your company’s competitiveness and appeal to top talent.

In this post, we’ll explore the multifaceted role of salary surveys in successfully entering and thriving in new markets.

1. Setting Competitive Compensation Packages:

When entering a new market, it’s essential to understand the local salary standards to attract top talent. Salary surveys provide data on prevailing wage rates for various roles within the specific market. This information is crucial for setting competitive salaries that are attractive to potential employees and in line with local expectations.

Top drivers cited by candidates for accepting a new job offer include: greater flexibility (59%) and higher compensation (40%). (Gartner)

54% out of 720 surveyed HR managers use salary benchmarking when setting the pay of new hires. (Harvard Business Review)

2. Aligning with Local Market Conditions:

Each market has its unique economic conditions and cost of living, which directly influence salary expectations. Salary surveys help businesses adjust their compensation structures to reflect these local conditions, ensuring that they are offering fair and competitive wages that resonate with the local workforce.

3. Talent Acquisition and Retention:

In a new market, the success of your venture largely depends on the quality of the team you assemble. To recruit and retain the best talent, your salary offerings need to be competitive. Salary surveys provide the necessary benchmarking to ensure your offers are in line with what top candidates in the market expect.

LinkedIn reports that 43 % of employees cite better compensation as a key factor for considering a job switch, underscoring the role of competitive salaries in talent retention.

4. Budgeting and Financial Forecasting:

When planning to enter a new market, accurate budgeting for staffing costs is essential. Salary surveys help in estimating these costs more accurately, allowing for more effective financial planning and forecasting.

5. Legal Compliance and Risk Management:

Different markets have various regulations regarding fair compensation and non-discriminatory pay practices. Salary surveys can help ensure that your pay scales comply with local laws and regulations, thus minimizing legal risks and potential fines.

According to the Society for Human Resource Management (SHRM), 42% of more than 1,300 HR professionals sampled said their organization operates in a location that requires pay ranges to be included in job postings.

Visier’s survey also found that 68% of employees would switch employers for greater pay transparency, even if compensation was the same

6. Building a Local Employer Brand:

Being known as a company that offers fair, competitive salaries based on reliable market data can significantly enhance your employer brand. This is particularly important when establishing a presence in a new market where your brand might not be well known yet.

Glassdoor statistics reveal that companies actively investing in employer brand can reduce turnover by as much as 28% and the cost per hire by as much as 50%.

7. Adapting to Market Dynamics:

Salary trends can change rapidly, especially in emerging markets or dynamic industries like technology. Regular participation in salary surveys helps companies stay updated with these changes, allowing them to adjust their compensation packages as needed to remain competitive.

8. Investor Relations:

Investors often scrutinize compensation practices as part of their due diligence. Having a solid understanding of salary market data helps companies demonstrate prudent financial management.

Comprehensive salary surveys offers invaluable insights into prevailing salary trends, ensuring your compensation package remains competitive. They align with the average British salary (or any location you choose) and are tailored to industry-specific benchmarks, such as engineer salaries and the salary of full-stack developers within your team.

The strategic use of salary surveys is much more than a mere HR tool; it’s a powerful instrument in a company’s market entry arsenal.  Understanding and adapting to local market conditions, staying competitive in talent acquisition, ensuring legal compliance, and building a solid employer brand are all facilitated by the insights gained from these surveys. As the global market landscape continues to evolve, integrating salary survey data into your market entry strategy could be the key to unlocking success in new ventures.

Be the First to Know!
Subscribe to receive the latest news and insider tips on tech recruitment directly in your inbox.

    Share

    We use Cookies in order to guarantee the full range of functions and to improve them continuously. By clicking on 'Accept all' you agree that functional cookies, statistics cookies and marketing cookies for personalised display of content from our advertising partners are stored in your browser. You can find further information in our Privacy Policy and Cookies information.

    Accept all
    [Free Guide]
    Effective HR Strategy 2024: Top Priorities to Focus on & Invest in
    Download report
    Want to staff security architect?
    Leave your details and we will contact you regarding terms and conditions