‘Competitive compensation’ is one of those phrases employers have used for so long that its meaning can start to feel assumed.

When employers add it in a job posting or mention it during a compensation conversation, the expectation is that employees will understand what it means and see it as a positive. But employees now have more ways than ever to compare what they earn with what they could earn elsewhere.

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A survey by Mercer Canada found 59 per cent of employees have researched their pay ranges and 53 per cent of generation Z employees share compensation information with colleagues. This means employees have more ways now to compare what they earn with what they could earn elsewhere. At the same time, they’re asking questions to determine whether a compensation package is actually competitive

Employers and employees don’t always think about competitive compensation the same. From an employer’s perspective, compensation teams may look at market data, comparable roles, salary ranges, geography and other factors to determine what a position should pay. Employers can then use those benchmarks to assess how their compensation compares with the market.

An employee, on the other hand,........

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