Importance of Salary Benchmarking Q & A with ADP
- vraj59
- Jul 29
- 2 min read
🚀 The Power of Salary Benchmarking for Small Businesses: Insights from a Q&A with ADP
👥 Why Salary Benchmarking Matters for Your Team
In an exclusive Q&A, I sat down with Caroline from ADP to dig into a topic vital for every small and medium-sized business owner: benchmarking market salary data. Here are the golden takeaways and actionable strategies you can leverage right now.
📊 What Is Salary Benchmarking?
Salary benchmarking means comparing what you pay your employees against market averages for comparable roles in your location and industry. ADP’s tools make this comparison hyper-local and current by drawing on more than 42 million anonymized U.S. payroll records, giving you data even on your next-door competitors.
💡 How Does Salary Benchmarking Boost Retention and Save Costs?
No More Guesswork: Know exactly what to pay—no more “just hoping” it’s fair.
Retention Magic: Employees are less likely to jump ship when they’re paid competitively.
Cost Control: Avoid overpaying roles where the market is lower and save thousands a year.
Attract Top Talent: Stand out with fair offers when hiring in competitive fields.
Action on Trends: Stay ahead by spotting salary shifts before your rivals.
🏆 Real-World Value for Business Owners
Companies using ADP’s benchmarking:
✅ Fix Underpayment: Discover if your staff is below market, adjust, and see retention go up.
✅ Trim Overpayment: Spot roles where you might be over budget and recalibrate.
✅ Gain Insights: Access unique local data, not just national averages.
🛠️ Where Does ADP’s Data Come From?
ADP Payrolls: Real-time, anonymized info from millions of U.S. paychecks.
Trusted Sources: Salary surveys, HR publications, professional networks.
True Market View: Data reflects actual current conditions, not just outdated averages.
👨💼 Who Benefits the Most?
Small business owners: Especially companies with 1–49 employees wanting to keep talent but manage costs.
S-Corporation owners: Need to prove “reasonable compensation” to the IRS? Benchmarking offers instant data that can be used in support of the reasonable compensation analysis.
Accountants: Use ADP’s Accountant Connect to get these insights for clients.
🔓 How Do You Access These Tools?
Included with 3 of ADP’s 4 payroll packages (not just the premium plan).
Easy onboarding and support—just contact your ADP rep or get referred through our network.
💬 Final Thoughts: More Than Just Numbers
As Caroline shared: “Benchmarking isn’t just about salary numbers—it empowers business owners to make informed, future-ready decisions for their teams and organizations, enhancing both retention and cost efficiency.” That means less worry and more confidence as your business grows.
🤝 Next Steps and Extra Perks
Ask your advisor (or contact us) about salary benchmarking and revenue-sharing referral programs.
Accountants: Explore the Accountant Connect platform for enhanced advisory capabilities.
Ready to get competitive and keep your best employees?Contact us at Raj & Associates CPA pc —or reach out to Caroline at ADP (Caroline.hoer@adp.com, 540-319-3706) to learn how benchmarking can change how you manage payroll and hire talent.
🌟 Stay tuned for our next Q&A covering more payroll and HR breakthroughs tailored for small business success!