What type of organizations are commonly surveyed when conducting a compensation survey to collect market...

Within the Total Rewards domain of the HRPA Professional Competency Framework, compensation benchmarking is grounded in selecting a relevant comparator market—organizations of similar industry, size, and geography with which the employer primarily competes for talent. For an average-performing organization with no unusual attraction/retention pressures, best practice is to benchmark against primary competing organizations to establish fair, market-competitive rates and maintain internal and external equity. Surveying top performers (B) is typically used when the strategy is to lead the market; low performers (A) or vague “potential competitors” (C) do not provide an appropriately matched market sample for standard market pricing.