What's your first step?
Define labor markets
To get the most accurate salary data from Payscale, labor markets must be set correctly. Your toughest competition for talent isn’t necessarily a company that also covets your customers. It’s more likely to be a regional neighbor in any industry who shares your needs for particular skill sets.
Want a comprehensive overview?
What is a labor market?
The labor market is the industry, the size of the organization, and the location where you compete to hire employees. Also called the talent market.
Why labor markets matter
Companies often talk about paying fairly to “market” but neglect defining what “market” actually means. How you define your labor market will determine the salary data you’ll see in PayScale: you’re choosing which organizations you’re competing against for talent.
How to define your labor market(s)
Avoid the common mistake of defining your market based on your business competitors–while sometimes true, more often than not, organizations compete for employees with organizations outside of their industry, size, and even location.
- Read the article: Defining your Labor Markets with PayScale
- Read the blog post: Guiding Discussion around Talent Markets
The Modern Comp Intro Series
- Step 1 - Modern Comp Resources
- Step 2 – Identify your labor markets
- Step 3 – Match your jobs
- Step 4 - Market Reports
