Salary benchmarking is the process of comparing an organization's compensation packages with industry standards to ensure competitiveness. It involves analyzing salary data for similar roles across peer companies, industries, and geographic locations.This practice helps organizations attract and retain top talent by offering fair and competitive pay. It also ensures internal equity, boosts employee satisfaction, and aligns compensation with market trends. Regular benchmarking enables businesses to adjust salaries based on economic shifts, labor market conditions, and job demands.