Salary Benchmarking for Small Business Owners

Small business owners and HR managers at smaller organizations often lack access to the expensive compensation surveys that large corporations use. BLS OEWS data — available free through WageDepth — fills this gap with reliable, methodologically rigorous wage benchmarks for every occupation in every geography.

Using WageDepth for Compensation Planning

To benchmark a position:

1. Find the most closely matching occupation in WageDepth occupations
2. Look up your metro area or state in WageDepth locations
3. Compare the 25th percentile (entry/below-market), 50th percentile (market rate), and 75th percentile (above-market, competitive) wages for your local area
4. Set your target range based on candidate quality and budget constraints

When to Pay Above Median

For roles that are difficult to fill, where turnover is costly, or where specific experience is critical — target the 75th percentile or above. For roles with high candidate supply and straightforward requirements, the median is defensible. Paying below the 25th percentile risks high turnover and difficulty hiring.

Adjusting for Benefits

BLS wage benchmarks don't include benefits. If your benefits package is stronger than competitors (better health insurance, retirement match, flexible schedule), you can pay slightly below the BLS median and still be competitive on total compensation. If benefits are weak, you'll need to offset with wages.