1. What does a market-related salary mean? A market-related salary refers to the going rate that the job market is prepared to pay for a specific role. This is done through salary benchmarking, which is an important tool that is used to understand pay levels across all the roles within an organisation.
Benchmarking involves a process where a company's jobs are matched to roles with similar responsibilities and at similar levels outside the business. Companies do this to identify the salary levels of various roles within the market.
2. How does my pay compare to other employees who work at my company and people in similar positions at other companies? Many times, companies participate in salary surveys that are run by independent service providers. This information provides an accurate view of salary ranges across various industries. Your human resources team might be able to share the information with you, which is typically presented in the form of a spread of salaries that indicate the lower and upper ends of the salary range for job roles.
Companies typically also have internal pay scales with lower and upper limits for each pay grade. Where you sit on the scale will depend on differentiating factors such as skill level, experience, performance, education and so forth.