Ensuring you have the right people in the right jobs is hugely important. Competing for the best talent in a competitive market and getting it right therefore equally important. This starts by offering a competitive salary. All other things being equal, a competitive salary only needs to be slightly higher than the competition. By calculating your salary competitiveness ratio, you maintain your attractiveness to candidates, as well as your ability to retain your current employees, while ensuring healthy compensation within your specific market.
KPI Formula
SCR (Salary Competitiveness Ratio) = Avg. company salary/Avg. Competitors salary * 100