Benchmarking salary is an important part of ensuring you are being paid fairly for your role and experience. With salaries varying significantly across industries, locations, company sizes and job titles, it can be tricky to know if you’re being paid competitively. Fortunately, there are some useful resources and methods that can help benchmark salary in the UK.
Check industry salary reports
One of the best ways to get a sense of the market rate for your role is to look at industry salary reports. A number of organisations publish in-depth compensation studies looking at pay across different sectors, locations, company sizes and job levels. Some good examples include:
- Korn Ferry UK Salary Survey – A comprehensive overview of salaries for hundreds of positions across major industries.
- Hays UK Salary & Recruiting Trends Guide – A detailed guide to salaries and hiring broken down by sector, region and job type.
- Robert Half UK Salary Guide – A guide to salaries for accounting, finance, banking, legal and technology roles.
- Reed Salary Calculator – Allows you to search average salaries based on job title, location and experience.
- ONS Annual Survey of Hours and Earnings – Government data on earnings across industries, regions and demographics.
These reports can give you an excellent benchmark to compare your salary against. Look for roles that closely match your job title, industry, location and experience level. While reports won’t be specific to your exact company and circumstances, they’ll give you a strong indication of the salary range you could expect.
Use job listing salary data
Another handy way to find salary benchmarks is to look at the pay ranges listed on current job postings. Websites like Indeed, Reed and TotalJobs allow you to search listings by job title and location. Looking at the advertised salary bands can show you what pay employers are offering for similar roles right now in the market.
This method can provide more real-time salary insights compared to annual industry reports. Be sure to pay attention to factors like location, company size, responsibilities and required experience when comparing to your own role. Entry-level, regional or junior positions will typically be lower than average salaries.
Check with recruitment companies
Recruitment agencies often have extensive salary data across different industries, specialisations and seniority levels. Consulting reputable recruitment firms that specialise in your sector can provide tailored benchmarks to help determine your earning potential.
Be clear about your job title, responsibilities, qualifications, experience and location. The more closely the recruitment consultant can match your situation, the more accurate the salary range they suggest will be. Some top UK recruitment firms include:
- Hays
- Robert Half
- Randstad
- ManpowerGroup
- Michael Page
- Experis
Use salary comparison tools
There are a number of free online salary checkers and comparison tools you can use to get a quick benchmark. Sites like PayScale, Glassdoor and Salary.com allow you to enter your job title, location and experience to see average salary data. The Indeed Salary Search also draws salary averages from job listings on the site.
While these sites won’t give as in-depth insights as industry reports, they can provide a useful ballpark figure. Be sure to enter details that closely match your actual situation for the most accurate salary range. Also note that averages can be skewed by very high or low outlier salaries.
Talk to contacts in your network
Speaking to people in your industry can provide insider salary information that reports and tools may not capture. Reach out to former colleagues, professional connections on LinkedIn and university alumni working in similar roles to get their input on pay benchmarks.
Let them know you are researching salaries in your field and would appreciate their perspective on what typical pay ranges look like. Most will be willing to share general figures or averages, without disclosing their exact compensation. This can give you helpful real-world data points to compare against.
Use salary calculators
There are several useful calculators that allow you to input details on your role, experience level, location, skills and qualifications to generate a tailored salary estimate:
- Reed Salary Calculator – Tailors salaries based on job title and location.
- Salaries Expert Salary Calculator – Considers job title, location, sector, company size and experience.
- CareerOneStop Salary Calculator – Allows you to customize job title, location, experience, education and skills.
- TotalJobs Salary Checker – Calculates estimated pay based on job title, location and experience.
These provide quick, individualised salary benchmarks. However, the underlying data may not always be as robust as thorough industry surveys. Use any figures as a guide, not a definitive amount.
Consider the size of your company
Salaries can vary significantly depending on the size of the company you work for. According to the ONS, average pay tends to be lower in small businesses compared to medium and large organisations:
Company size | Average annual pay |
---|---|
Small (10-49 staff) | £25,100 |
Medium (50-249 staff) | £28,800 |
Large (250+ staff) | £35,100 |
When comparing your salary, look at benchmarks for companies of a similar size. If you are at a smaller firm, your pay may land below reported averages for your industry and job title.
Account for your location
Salaries in the UK tend to be highest in London and the South East, while lower in other regions like Wales, Northern Ireland and the North East. According to Reed’s 2023 Salary Guide, average pay varies significantly by region:
Region | Average Salary |
---|---|
London | £40,124 |
South East | £33,088 |
North West | £30,worked |
East Midlands | £29,344 |
West Midlands | £29,136 |
East of England | £28,944 |
Yorkshire and The Humber | £28,620 |
North East | £27,744 |
South West | £27,696 |
Wales | £26,968 |
Northern Ireland | £26,520 |
Scotland | £26,472 |
When assessing your salary, look for benchmarks specific to roles in your geographic area. If you are outside London and the South East, your expectations may need to be adjusted.
Factor in qualifications and skills
Your education, qualifications and skillset can have a significant impact on salary potential. According to totaljobs.com, salaries tend to rise with higher qualification levels:
Qualification | Average Salary |
---|---|
GCSE | £18,800 |
A Level | £21,000 |
Bachelor’s Degree | £25,900 |
Master’s Degree | £29,600 |
MBA | £41,500 |
PhD | £43,800 |
Advanced degrees, sought-after certifications and specialised abilities like fluency in programming languages or analytics tools can boost your earning potential. Factor your education and skillset against benchmarks to reach an accurate comparison.
Consider your experience level
Salaries tend to rise in line with years of professional experience in your field. Entry-level salaries will sit far below those of mid-career or senior-level roles. When comparing against benchmarks, look for data representing your specific experience bracket, such as:
- 0-2 years’ experience – Entry level
- 3-5 years’ experience – Early career
- 6-10 years’ experience – Mid-career
- 10+ years’ experience – Experienced or senior level
Adjust your expectations up or down depending on where you sit on this spectrum – an entry-level salary straight out of university will be vastly different to a Department Head with 15 years’ experience, for example.
Consider your job responsibilities
Salaries can vary significantly depending on your job duties and level of responsibility, even within the same field. For example, a Marketing Assistant, Marketing Manager and Marketing Director would all expect very different pay despite working in marketing.
Look for salary data benchmarked specifically against roles with similar responsibilities and seniority to yours. This will provide a much more relevant comparison than just looking at broad profession averages.
Use multiple sources
Relying on just one salary survey or tool may not give the complete picture. Every source will have its limitations in terms of industry coverage, sample size, respondent demographics etc. For the most accurate snapshot, consult several trusted sources like industry reports, job listings, recruitment firms and calculators.
Look at the consensus across these sources to get a robust view of salary benchmarks for your specific situation. Any outliers on the high or low end may be less reliable than the broader trends.
Treat benchmarks as a guide
While useful for gauging your earning potential, remember salary benchmarks provide general guidance rather than definitive figures. The data reports averages and ranges, often across wide industry and location categories. Your specific circumstances at your employer may warrant slightly above or below reported figures.
Use reported benchmarks during salary negotiations to back up your requested pay, but be open to nuance based on your unique value, the company’s financials and market conditions. There is salary wiggle room above and below reported averages.
Benchmark regularly
Compensation benchmarks evolve over time with economic conditions, so you should revisit them regularly when considering your salary. Market rates in 2022 or 2023 may look quite different to 2021 or earlier. Review updated reports each year when preparing for reviews or pay discussions.
Setting Google alerts for salary reports can help keep you on top of the latest releases. Recruiters can also provide up-to-date insights on any salary trends in your sector.
Conclusion
Benchmarking your salary against industry standards is a key step in understanding your earning potential and negotiating fair pay. While reports, calculators and recruiters provide helpful guidance, remember to find data reflecting your exact role, experience, location, skills and employer. With multiple tailored benchmarks in hand, you can approach your boss armed with competitive salary insights to make a compelling case for your worth.