In today’s global marketplace, organisations are competing with businesses around the world for top talent. This competition is no longer just for local talent, but rather global talent and often, companies can hire remotely from around the world. What are the implications for salary expectations? In our latest report we delve into global salary benchmarking to help organisations attract the right talent.
What Is Global Salary Benchmarking?
Global salary benchmarking is comparing the employer offering (salary, bonuses and incentives, benefits and equity or long-term incentives) of organisations and employees with similar roles with counterparts around the world. While benchmarking to ensure that total rewards are fair and competitive.
Why Salary Benchmarking Matters More Than Ever
The top talent now in the market is better informed, more mobile, and more sophisticated than ever before. As a result, they are able to evaluate total compensation across the globe and decide whether an offer is competitive based. Large corporations are entering new markets, aggressively sourcing talent in countries with lower cost structures to drive efficiency, as well as seeking specialised skills not currently available at home.
Employers need accurate benchmarking information to compete for talent, to avoid making an offer that will be countered with a better one from another company, to ensure they are not overpaying in some markets while underpaying in others, and to ensure fair compensation within their own company.
Key Salary Trends in 2026
As more countries create legislation around pay transparency, the practice is becoming less of an option and more of a requirement. Companies should include the salary range for a role, the bonus structure, and the potential for career progression in their job descriptions. Employers must be confident in communicating a data-driven salary structure to new employees. Salary structures will be less dependent on location as the value that an employee brings to a company becomes less relative to the market rate in their area.
Towards the end of 2026, professionals with specialty skills in compliance, clean energy and aerospace will command high salaries regardless of location. Organisations will become more cost conscious in their hiring practices, and as a result will adopt a cost versus value approach to hiring the best talent. As a result, salary information must be benchmarked globally and total rewards will become a key differentiator for employer choice.
Salary alone will not be enough. Candidates are looking for; flexible working hours, comprehensive benefits, career progression opportunities, performance bonuses and long term incentives.
What Top Talent Expects in 2026
To attract the right candidate for your organisation, you need to have an understanding of their expectations for the role. High performing candidates expect to be offered a competitive and fair salary for the role that reflects the global “market rate”. Furthermore, they expect transparency around the total salary structure and bonus policy. In addition to the traditional office working day, candidates expect some flexibility in their working arrangements as flexible working, remote working and hybrid working models are increasingly becoming the norm.
They want to know that there are opportunities for career progression in the organisation and that they will be investing their time in a role that will offer long-term opportunities not a short-term fix. There is a growing number of employers looking for candidates with international experience and/or skills in order to participate in global projects and to work with global teams.
How to Benchmark Salaries Effectively
To remain competitive businesses need a considered and strategic approach to setting salary structures. Using the latest available data and salary benchmarking information is key to getting it right. Typically salary for roles is benchmarked based on responsibilities, experience and skills (rather than job title which can vary hugely between countries and regions).
Common Salary Benchmarking Mistakes
While local data and global data benchmarks are both important to ensure accurate pay rates, organisations that only use one or the other are missing out on valuable insights. Additional errors include placing too much emphasis on base salary, having an inconsistent salary structure, and failing to consider the total rewards programme. Avoiding these pitfalls requires a proactive, data-driven approach.
Final Global Salary Benchmarking Thoughts
The future of salary benchmarking in 2026 is not just about numbers. Salary benchmarking must incorporate not only the talent available in the market but also the dynamic market forces at play, as well as the organisation's overall business strategy.
When developing salary strategy, consider the expectations of employees around the world and the evolving global demographics of your own workforce. This will help you build a stronger, more effective team, and drive business results.
Want the latest salary market updates? We can share our global experience and research on organisations of all sizes and industry. Alongside their benchmarking and competitive salaries practices.
For more information please reach out to get connected with one of our Talent Alchemists.
