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Compensation Benchmarking

Compensation Benchmarking

The process of comparing a company's salary structure against market data to ensure competitive and compliant pay.

Compensation benchmarking is a structured process of collecting and analyzing market salary data to determine whether a company's pay structure is competitive within its industry and geography. In Saudi Arabia, benchmarking must account for the dual workforce — Saudi nationals and expatriates — with separate salary bands often applied. It informs job grading, pay equity analysis and annual salary reviews. It is also a key input to Saudization strategy as competitive salaries for Saudi nationals are essential to attracting and retaining local talent and achieving Nitaqat compliance. Inclusive Solutions conducts Saudi-specific compensation benchmarking using verified local market data.