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What is a Competitive Salary

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competitive salary or market-based salary is a salary that an employee receives for his or her work and is in line with the wages in the market and the remuneration for equivalent positions. In practice, the word 'conform' can best be translation. A market-conform salary is often referred to as a term in a vacancy text. In that case the employer wants to show in the vacancy that they use a salary that is average compared to other companies in which the same positions or vacancies are present.

Market-conform salary or CLA-compliant salary

If in a vacancy it's stated that a salary is in line with the market, no further information will usually be provided about the amount of the salary or wage. This can raise questions with the reader of the vacancy. He or she can ask themselves what the actual salary is that someone will earn in this position. In any case, this salary will have to comply with the legal frameworks and must therefore conform to the collective labor agreement of the sector. The wage scales are precisely defined in most collective agreements and companies will have to adhere to the company collective agreement or branch collective agreement.

In fact, in many cases where a market-conform salary is appointed, you could also speak of a collective agreement-compliant salary. However, this is a superfluous term because all companies are obliged to adhere to a collective agreement if a collective agreement has been set for the company or sector after consultation between employers 'organizations and employees' organizations that are also referred to as social partners.

How do you know what the competitive salary is?

Salary in line with the market is of course a nice concept, but on the other hand it's also a concept that is unclear. How does anyone know whether a salary that is mentioned during an interview is in line with the market or not? In any case, the salary offered for this position must be at least equal to the monthly income that most other employees in the same position and industry receive on average. When you have worked in a certain job group for a long time, you often know what a competitive salary is for a job.

However, if you have little knowledge and experience in a specific position, you can also find out about a salary that is in line with the market in various ways. For example, you can search for multiple vacancies from the same industry with the same job title. There will be several companies that have mentioned a clear amount with regard to the salary. These amounts can then give a clear indication of a competitive salary. You can also consult the relevant collective agreement of the sector or the company to determine a salary in line with the market. Then of course you need to know how the function of the vacancy is assessed by the company.

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