How to use the data you find
Whatever sources you use, Alistair’s advice is to document them as you go.
“Document all the details – the recruiter’s name and email, the number they gave you, the notes on their conversation, the call recording if there is one,” he says, “because when you present the outcome back to a hiring manager or a CFO, think of them as the courts. It's got to be watertight, and all that evidence is needed.”
And one word of warning: “Don’t rely on URLs, always screenshot the job advert – that URL will be pulled offline in a couple of months, and you’re left with nothing to show.”
Of course, each data source comes with a different level of reliability and relevance, so it’s also important to document your interpretation of the numbers and rationale for how you’re using it to inform internal decisions.
Take industry reports, for instance – they’re not produced by benchmarking experts, so they don’t have the same level of rigour.
“When you look at a report produced by a recruitment company you’ll typically see four of five levels of seniority,” Alistair says, “it will never be a standardised framework like Ravio or other providers would use to ensure like-for-like comparisons.”
“Equally, you don’t get market percentiles either. You might get a minimum, mid, and maximum range, or just a straight average. So how do you know if that aligns with the 75th percentile, or the 50th, or the 90th?”
This context needs to be documented and used to inform the final decision.
Sunny's team keeps what he calls a "Rosetta Stone" – one file matching external market data across sources back to internal roles, with every decision, deviation, premium, and exception recorded against it.
"If you lose track of all these micro decisions, you lose the structure and it becomes chaos."
Sunny also documents his confidence level for each source in this file, alongside the numbers – his way to account for the reliability issues that Alistair points to.
"I categorise confidence levels as high, medium, or low," he says. "I'm very candid and transparent about this to the business – this is my confidence level in the number, this is why, this is the context I've got."
"With bespoke recruiting reports, they tend not to share any information on which companies were involved in the survey, or their methodology. That drops my confidence from high to medium, straight off the bat."
Alongside this, Sunny will also sense check each data source by comparing their numbers for non-niche roles with internal benchmarks, and by using differentials to model an expected range for the niche role too.
"I use pay differentials,” he says. "What do the majority of my roles cost in my most prevalent market? I look at wage inflation, cost of labour differentials across regions, and model it out for myself." If a report lands in the same range, it earns more trust. If it doesn't: "I'm likely to disregard the report entirely, if I'm honest."
All of this will give you the data and the context to make an informed decision about where this role sits in the market, and relative to your other roles – and to be able to explain that decision to your team.
"I always say that the core currency we're trading in Rewards is trust," Sunny says. "You have to earn it, and keep earning it every day."