IntermediateTECHNICAL
Walk me through the step-by-step process you use to conduct a compensation benchmarking exercise for a critical role in a competitive market. How do you select data sources, normalize the data, address internal equity, and present your recommendation to leadership?
HR Manager
General

Sample Answer

For a Senior Data Engineer role in a high-growth tech firm, I led a full comp benchmark. First, I defined the job profile and critical skills, then selected three reliable surveys (Radford, Mercer, and Payscale MarketPay) plus LinkedIn Salary Insights for validation. I matched by size, industry, and region, and normalized data by annualizing base, converting currency, and adjusting for 10% geographic differential using our comp philosophy. I built a market range at P50–P75 in Excel, then overlaid internal data from Workday to flag compression and gender pay gaps. I proposed moving the range up 8% and targeted hiring at P60, with a one-time adjustment for two incumbents (5–7%). I presented a 1-page dashboard to leadership showing cost impact (+2.3% payroll) and projected time-to-fill reduction from 65 to 45 days.

Keywords

Use multiple vetted market data sources and validate against real-time dataNormalize by geography, currency, and total cash componentsRun internal equity checks to avoid compression and pay gapsPresent a clear cost-impact and talent-risk summary to leadership
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