Salary benchmarking involves gathering and analysing comparative pay data to evaluate an organization’s compensation practices. It can be conducted internally, by comparing salaries within the organization, or externally, by comparing internal pay levels with those of competitors in the market [1].
In the mining industry, salary benchmarking is particularly critical because skilled workers are in high demand and can easily move to better-paying opportunities. It goes beyond base salary, taking into account the entire compensation package, such as bonuses, allowances, superannuation, and other benefits [2].
Unlike many other industries, mining takes a more specialized approach to salary benchmarking due to the highly specific nature of its roles. Typically, the process involves [2]:
- Identifying target companies for comparison, usually those with similar operations, size, or located in the same region.
- Collecting data from surveys and industry reports.
- Reviewing a wide range of positions, from site supervisors to senior executives.
- Comparing the entire remuneration package, not just base salaries.
For HR managers aiming to secure top talent, salary benchmarking is a powerful tool for staying competitive. It reveals exactly what needs to be offered to attract skilled workers in a tight market and helps assess whether the organization is getting good value from its pay strategy. It also shows whether current compensation practices are effectively supporting recruitment and retention. Most importantly, it helps prevent costly errors because getting pay wrong at the outset is difficult to correct later without causing internal issues.
Reference
[1] “How salary benchmarking improves your compensation strategy | Brightmine,” Brightmine US. Accessed: Aug. 14, 2025. [Online]. Available: https://www.brightmine.com/us/resources/total-rewards/benchmarking/how-salary-benchmarking-improves-your-compensation-strategy/
[2] S. Gaspar, “What is salary benchmarking in mining?,” Globe 24-7. Accessed: Aug. 14, 2025. [Online]. Available: https://globe24-7.com/news-insights/what-is-salary-benchmarking-in-mining/
