Salary Evaluations: Everything You Need to Know

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See this post to learn the basics of this vital process."/> <meta name="title" content="Salary Evaluations: Everything You Need to Know"/> <meta name="description" content="Performing salary evaluations regularly is a must to make sure your business offers compelling compensation that can attract and retain today’s top talent. See this post to learn the basics of this vital process."/> <meta property="og:publication_time" content="2023-06-12T14:47:29+0000"/> <script> (function() { window.SM_SPLITSIGNAL = window.SM_SPLITSIGNAL || {ready: false} window.addEventListener( 'splitsignal.initialized', function() { if (!aemSettings.isReactApp) { window.SM_SPLITSIGNAL.ready = true } } ) var script = document.createElement('script') script.id = 'a4a03573-e3f5-4f01-8963-395af304b0b2' script.src = 'https://seoab.io/react/' script.type = 'module' script.defer = true document.head.appendChild(script) })() </script> <script type="application/ld+json"> { "@context": "http://schema.org", "@type": "WebPage", "name" : "Salary Evaluations: Everything You Need to Know", "url": "https://www.roberthalf.com/us/en/insights/research/why-the-salary-evaluation-is-key-to-your-companys-success", "isPartOf": { "@type": "WebSite", "name": "Robert Half", "url": "https://www.roberthalf.com/us/en", "publisher": { "type": "Organization", "name": "Robert Half", "legalName": "Robert Half Inc.", "url": "https://www.roberthalf.com/us/en", "@id": "https://www.roberthalf.com/us/en" } }, "mainEntity": [{"@context":"http://schema.org","@type":"BlogPosting","url":"https://www.roberthalf.com/us/en/insights/research/why-the-salary-evaluation-is-key-to-your-companys-success","image":"https://www.roberthalf.com/content/dam/roberthalf/images/blogs/us/en/hr1/Shutterstock_2418447453.jpg","articleBody":"Salary evaluations are a game-changer when it comes to boosting employee morale, attracting top talent, and staying ahead of the competition. By regularly reviewing and adjusting wages, you ensure your compensation packages not only keep pace with industry standards but also give your team a reason to stay loyal and motivated.\r\nRegular salary appraisals by industry and geographic area are essential for retaining your current team and attracting new talent. According to the 2025 Salary Guide From Robert Half, 48% of managers expect ongoing difficulty meeting candidates’ compensation expectations, making regular salary reviews more important than ever. By continually benchmarking and adjusting your salaries, you can keep up with market trends — especially important in today’s environment, where competition for skilled professionals is intense.\r\nWith that in mind, let’s explore some frequently asked questions about salary evaluations.\r\nThis largely depends on the size of your organization. For larger firms, salary evaluations are typically led by the human resources department, while in smaller companies, managers may take on the responsibility of salary reviews and appraisals for their teams. In either case, it’s important that the salary evaluation process is informed by the latest market data and trends.\r\nRegularly conducting salary evaluations helps fortify your company’s retention efforts. In a competitive market, money remains a critical factor in employee satisfaction. Regular salary reviews also help you stay current with compensation trends, such as the shift toward performance-based incentives and more flexible total compensation packages. Employers who frequently conduct salary appraisals are more likely to identify under-compensated employees before dissatisfaction takes hold, ensuring their top talent remains engaged and less likely to leave for better-paying offers.\r\nOn top of that, salary evaluations can help you spot areas where you might be overpaying for certain roles. They can also reveal positions that might be better suited for contract professionals rather than full-time employees, allowing you to make smarter staffing decisions that fit your budget and needs.\r\nThe 2025 Salary Guide from Robert Half and Salary Calculator are great resources for compensation information and insights into the latest hiring trends. (So, too, is our Demand for Skilled Talent report, which we update regularly.) The Occupational Outlook Handbook from the Bureau of Labor Statistics can also be helpful. It includes wage information and other details for a wide range of jobs. You might also check out online job boards for positions in your industry and region.\r\nUsing pay management software to automate parts of the salary evaluation process is certainly possible, and many companies are already doing it. The main advantage of automation in this context is significantly reducing the time and effort required for manual calculations and assessments. Automation can also help streamline benchmarking, incorporate real-time data, and potentially improve accuracy by reducing human error.\r\nThat said, there are some drawbacks to consider. Setting up automation tools can be expensive, and relying too much on technology might mean losing the human touch, which is essential in retention and morale. Lack of human involvement can also lead to employees’ unique circumstances or individual contributions being overlooked. Finding the right balance between technology and human oversight is crucial for getting the most out of automated salary reviews.\r\nWages aren’t the only thing to weigh in your overall salary evaluation. More companies are assessing their employee benefits and perks, vacation time, flexible working policies, 401(k) matches and bonuses to land and keep valued staff.\r\nRemember, too, that job duties can evolve and expand significantly over time. Establish compensation for each role in a range rather than a specific amount so you can factor in these variables. Anecdotal information can also be valuable. When team members depart your organization, conduct an exit interview to gauge whether or not they felt fairly compensated. Consider that feedback when determining the salary level you will advertise for the open role.\r\nSalary evaluations are a great chance to tackle pay equity by making sure everyone is paid fairly for their skills and contributions. Regular salary evaluations can help you spot any pay gaps between employees in similar roles, making sure your compensation strategy supports your diversity, equity and inclusion goals and promotes fairness and transparency.\r\nNot only should salaries for a particular role change over time based on the incumbent’s experience level, but the market value of some jobs can also change quickly — especially in this era of rapid technological innovation. Businesses’ growing adoption of new technologies enhances job expectations and, in some cases, creates entirely new professions.\r\nMany of the jobs needed in the future workplace will require professionals to have broader skill sets, which will, in turn, demand higher levels of compensation. Employees who master cloud systems, automation and generative AI will become increasingly valuable because they can work faster and more efficiently and potentially provide deeper insights for their colleagues and customers.\r\nThe depth of knowledge of new technologies required will vary from department to department. While your business may not need to hire an AI specialist such as a programmer or engineer, for example, you may need to recruit a finance professional who has worked with financial AI applications and can identify new AI use cases for the business.\r\nSalary evaluations are more than just setting a number — they’re about understanding total compensation, future skills needs and the changing preferences of your workforce. 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link.replace(key, accountMenuConfigJSON[key]); } } } return link; } initializeAccountMenu(); </script> </div> </div> </div> </div> <div class="root container-fluid cmp-container aem-GridColumn--default--none aem-GridColumn aem-GridColumn--default--10 aem-GridColumn--offset--default--1"> <rhcl-block-full-width-hero data-tagurl="/us/en/insights/tags" publish-date="2024-11-19T16:31:00-08:00" author-name="Robert Half" author-destination="/us/en/insights/authors/robert-half" variant="shareable"> <h1 slot="headline">Salary Evaluations: Everything You Need to Know</h1> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/salaries-and-roles">Salaries and Roles</a> </rhcl-tag> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/salary-and-hiring-trends">Salary and hiring trends</a> </rhcl-tag> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/negotiating-offers">Negotiating Offers</a> </rhcl-tag> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/research">Research and insights</a> </rhcl-tag> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/compensation-and-benefits">Compensation and Benefits</a> </rhcl-tag> <rhcl-tag slot="tag"> <a slot="destination" href="/us/en/insights/tags/article">Article</a> </rhcl-tag> <rhcl-engagement-bar slot="engagement-bar" enable-email="true" enable-facebook="true" enable-linkedin="true" enable-twitter="true" enable-xing="false" enable-print="false" share-title="Salary Evaluations: Everything You Need to Know" share-url="https://www.roberthalf.com/us/en/insights/research/why-the-salary-evaluation-is-key-to-your-companys-success"></rhcl-engagement-bar>  <img slot="media" loading="eager" fetchpriority="high" sizes="(min-width: 1024px) 1536px,(min-width: 768px) 1112px,(min-width: 0px) 863px" srcset="https://s7d9.scene7.com/is/image/roberthalfintl/Shutterstock_2418447453:Large-1x?fmt=webp-alpha 1536w,https://s7d9.scene7.com/is/image/roberthalfintl/Shutterstock_2418447453:Medium-1x?fmt=webp-alpha 1112w,https://s7d9.scene7.com/is/image/roberthalfintl/Shutterstock_2418447453:Small-1x?fmt=webp-alpha 863w" src="https://s7d9.scene7.com/is/image/roberthalfintl/Shutterstock_2418447453:Large-1x?fmt=webp-alpha" alt="A smiling professional woman with curly gray hair works on a laptop and takes notes at her desk in an office." aria-hidden="true" width="863" height="346"/> </rhcl-block-full-width-hero> </div> <div class="column-ctrl aem-GridColumn--default--none aem-GridColumn aem-GridColumn--default--10 aem-GridColumn--offset--default--1"> <div class="rhcl-content-container"> <section class="aem-Grid aem-Grid--12 container-fluid"> <div class="row column-control-row"> <div class="aem-GridColumn aem-GridColumn--default--8 col-md-8"> <div class="aem-Grid aem-Grid--12 aem-Grid--default--12 "> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <rhcl-typography slot="copy">Salary evaluations are a game-changer when it comes to boosting employee morale, attracting top talent, and staying ahead of the competition. By regularly reviewing and adjusting wages, you ensure your compensation packages not only keep pace with industry standards but also give your team a reason to stay loyal and motivated.</rhcl-typography> <rhcl-typography slot="copy">Regular salary appraisals by industry and geographic area are essential for retaining your current team and attracting new talent. According to the <a href="/us/en/insights/salary-guide" target="_self">2025 Salary Guide From Robert Half</a>, 48% of managers expect ongoing difficulty meeting candidates’ compensation expectations, making regular salary reviews more important than ever. By continually benchmarking and adjusting your salaries, you can keep up with market trends — especially important in today’s environment, where competition for skilled professionals is intense.</rhcl-typography> <rhcl-typography slot="copy">With that in mind, let’s explore some frequently asked questions about salary evaluations.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"> <div class="rhcl-content-container"> <rhcl-block-callout variant="text-and-link"> <rhcl-typography slot="callout"><b>How to Conduct Salary Evaluations</b> <ul><li><a href="#toc1">Who handles the salary evaluation process?</a></li><li><a href="#toc2">Why conduct a salary evaluation regularly?</a></li><li><a href="#toc3">What resources should you reference when setting salaries?</a></li><li><a href="#toc4">Is it possible to automate salary evaluations?</a></li><li><a href="#toc5">What else should you consider when setting salaries for employees?</a></li><li><a href="#toc6">How does pay equity fit into salary appraisals?</a></li><li><a href="#toc7">How can the salary evaluation process help your business plan for the future?</a></li></ul> <b> </b> </rhcl-typography> </rhcl-block-callout> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc1"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">Who handles the salary evaluation process?</h2> <rhcl-typography slot="copy">This largely depends on the size of your organization. For larger firms, salary evaluations are typically led by the human resources department, while in smaller companies, managers may take on the responsibility of salary reviews and appraisals for their teams. In either case, it’s important that the salary evaluation process is informed by the latest market data and trends.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc2"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">Why conduct a salary evaluation regularly?</h2> <rhcl-typography slot="copy">Regularly conducting salary evaluations helps fortify your company’s retention efforts. In a competitive market, money remains a critical factor in employee satisfaction. Regular salary reviews also help you stay current with compensation trends, such as the shift toward performance-based incentives and more flexible total compensation packages. Employers who frequently conduct salary appraisals are more likely to identify under-compensated employees before dissatisfaction takes hold, ensuring their top talent remains engaged and less likely to leave for better-paying offers.</rhcl-typography> <rhcl-typography slot="copy">On top of that, salary evaluations can help you spot areas where you might be overpaying for certain roles. They can also reveal positions that might be better suited for contract professionals rather than full-time employees, allowing you to make <a href="/us/en/insights/hiring-help/the-many-benefits-of-a-flexible-staffing-strategy" target="_self" rel="noopener noreferrer">smarter staffing decisions</a> that fit your budget and needs.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc3"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">What resources should you reference when setting salaries?</h2> <rhcl-typography slot="copy">The<a href="/us/en/insights/salary-guide" target="_self" rel="noopener noreferrer"> 2025 Salary Guide from Robert Half</a> and<a href="/us/en/insights/salary-guide/calculator" target="_self" rel="noopener noreferrer"> Salary Calculator</a> are great resources for compensation information and insights into the latest hiring trends. (So, too, is our <a href="https://www.roberthalf.com/employment-trends-demand-for-skilled-talent" target="_blank" rel="noopener noreferrer">Demand for Skilled Talent report</a>, which we update regularly.) The <a href="https://www.bls.gov/ooh/" target="_blank" rel="noopener noreferrer">Occupational Outlook Handbook</a> from the Bureau of Labor Statistics can also be helpful. It includes wage information and other details for a wide range of jobs. You might also check out online job boards for positions in your industry and region.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc4"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">Is it possible to automate salary evaluations?</h2> <rhcl-typography slot="copy">Using pay management software to automate parts of the salary evaluation process is certainly possible, and many companies are already doing it. The main advantage of automation in this context is significantly reducing the time and effort required for manual calculations and assessments. Automation can also help streamline benchmarking, incorporate real-time data, and potentially improve accuracy by reducing human error.</rhcl-typography> <rhcl-typography slot="copy">That said, there are some drawbacks to consider. Setting up automation tools can be expensive, and relying too much on technology might mean losing the human touch, which is essential in retention and morale. Lack of human involvement can also lead to employees’ unique circumstances or individual contributions being overlooked. Finding the right balance between technology and human oversight is crucial for getting the most out of automated salary reviews.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc5"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">What else should you consider when setting salaries for employees?</h2> <rhcl-typography slot="copy">Wages aren’t the only thing to weigh in your overall salary evaluation. More companies are assessing their <a href="/us/en/insights/research/the-benefits-and-perks-most-important-to-workers-in-2022" target="_self" rel="noopener noreferrer">employee benefits and perks</a>, vacation time, flexible working policies, 401(k) matches and bonuses to land and keep valued staff.</rhcl-typography> <rhcl-typography slot="copy">Remember, too, that job duties can evolve and expand significantly over time. Establish compensation for each role in a range rather than a specific amount so you can factor in these variables. Anecdotal information can also be valuable. When team members depart your organization, conduct an exit interview to gauge whether or not they felt fairly compensated. Consider that feedback when determining the salary level you will advertise for the open role.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc6"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">How does pay equity fit into salary appraisals?</h2> <rhcl-typography slot="copy">Salary evaluations are a great chance to tackle pay equity by making sure everyone is paid fairly for their skills and contributions. Regular salary evaluations can help you spot any pay gaps between employees in similar roles, making sure your compensation strategy supports your <a href="/us/en/insights/diversity-equity-inclusion" target="_self" rel="noopener noreferrer">diversity, equity and inclusion</a> goals and promotes fairness and transparency.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <a id="toc7"></a> <div class="rhcl-content-container"> <rhcl-block-copy variant="standard"> <h2 slot="headline">How can the salary evaluation process help your business plan for the future?</h2> <rhcl-typography slot="copy">Not only should salaries for a particular role change over time based on the incumbent’s experience level, but the market value of some jobs can also change quickly — especially in this era of rapid technological innovation. Businesses’ growing adoption of new technologies enhances job expectations and, in some cases, creates entirely new professions.</rhcl-typography> <rhcl-typography slot="copy">Many of the jobs needed in <a href="/us/en/insights/research/workplace-trends" target="_self" rel="noopener noreferrer">the future workplace</a> will require professionals to have broader skill sets, which will, in turn, demand higher levels of compensation. Employees who master cloud systems, automation and <a href="/us/en/insights/research/how-generative-ai-is-already-changing-businesses-and-their-talent-needs" target="_self" rel="noopener noreferrer">generative AI</a> will become increasingly valuable because they can work faster and more efficiently and potentially provide deeper insights for their colleagues and customers.</rhcl-typography> <rhcl-typography slot="copy">The depth of knowledge of new technologies required will vary from department to department.  While your business may not need to hire an AI specialist such as a programmer or engineer, for example, you may need to recruit a finance professional who has worked with financial AI applications and can identify new AI use cases for the business.</rhcl-typography> <rhcl-typography slot="copy">Salary evaluations are more than just setting a number — they’re about understanding total compensation, future skills needs and the changing preferences of your workforce. By making salary appraisals an ongoing, thoughtful effort, you can position your business as an employer of choice in a competitive talent market.</rhcl-typography> </rhcl-block-copy> </div></div> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"><div class="cq-placeholder" data-emptytext="COP Copy Block"></div> <div class="rhcl-content-container"> <rhcl-block-copy variant="cta"> <a slot="primary-cta" href="/us/en/find-jobs" target="_self">Search jobs</a> <a slot="secondary-cta" href="/us/en/hire-talent" target="_self">Get hiring help</a> </rhcl-block-copy> </div></div> </div> </div> <div class="aem-GridColumn aem-GridColumn--default--4 col-md-4"> <div class="aem-Grid aem-Grid--12 aem-Grid--default--12 "> <div class="root container-fluid cmp-container aem-GridColumn aem-GridColumn--default--12"> <div class="cq-placeholder" data-emptytext="RA.001 Related Articles"></div> <div class="rhcl-content-container"> <rhcl-related-articles> <rhcl-article 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Salary Evaluations: Everything You Need to Know | Robert Half