Using Data to Benchmark Compensation: A Recruiter’s Guide

Emanuel Orozco
Sep 11
2 min read

In an era of salary transparency and shifting candidate expectations, compensation benchmarking is no longer a back-office exercise—it’s a strategic advantage. For law firms, tech companies, and financial services organizations, understanding the market rate for talent is crucial not just for attracting candidates but also for retaining them.

At James Search Group (JSG), we work with clients to leverage compensation data as a tool for trust-building, smart hiring, and long-term planning.

Why Benchmarking Matters More Than Ever

Today’s professionals are informed and empowered. Platforms like Glassdoor, Levels.fyi, and Fishbowl give candidates more insight than ever before into what their peers are earning. If your offer isn’t competitive—or worse, if it feels opaque—you risk losing top-tier talent.

Salary benchmarking helps:

Ensure internal equity
Stay competitive in a shifting market
Justify compensation decisions to stakeholders
Improve offer acceptance rates

Build Trust Through Transparency

Transparency around compensation doesn’t mean sharing every number in a job post. It means being able to speak confidently about how pay is structured, why it’s fair, and how it compares to market standards. Candidates appreciate clarity on:

Base salary ranges
Bonus eligibility and structure
Path to progression and raises
Equity or profit-sharing (when applicable)

Firms that embrace this openness build trust—starting in the hiring process and extending through the employee lifecycle.

Leverage Data Sources Wisely

Benchmarking starts with good data. Combine sources for the clearest picture:

Industry surveys (NALP, ALM, Robert Half, Radford, etc.)
Third-party tools (e.g., Payscale, Salary.com, Levels.fyi)
Internal compensation history and trends
Recruiter insights from current market activity

JSG regularly synthesizes these sources to provide custom compensation snapshots tailored to role, location, seniority, and sector.

Go Beyond Base Salary

Top candidates evaluate total rewards, not just base salary. Be sure to benchmark and communicate:

Bonus structures
Benefits packages (healthcare, 401(k), etc.)
Hybrid/remote flexibility
Time-off policies
Professional development stipends or CLE budgets

Highlighting these components helps you compete even if base salaries don’t match the very top of the market.

Use Benchmarking to Inform Workforce Strategy

Compensation benchmarking isn’t just for offers—it’s a workforce planning tool. Use it to:

Identify roles at risk of attrition due to below-market pay
Create salary bands that promote internal mobility
Support DEI initiatives with consistent pay equity reviews
Justify budget needs to leadership or clients

Conclusion

In a hiring market where speed and transparency win, data-backed compensation strategies are your edge. At James Search Group, we help employers cut through noise, benchmark intelligently, and present offers that reflect both market reality and internal values. Better benchmarking isn’t just about numbers—it’s about building trust with every hire.