Many employers include the cryptic phrase “competitive salary” in job listings. Generally, the term means that the job pays somewhere around the local average for your field. If the pay is truly competitive, you should be able to easily make a similar salary in the same job at another firm in your area.
Defining the Competition
To determine whether a wage is truly competitive, define the competition. For example, according to the U.S. Census Bureau, the average individual income in the United States was $40,563 a year in 2012. But the Bureau of Labor Statistics reports that in May 2013, the average salary of U.S. dentists was $164,570 a year. So for a dentist, a salary of $70,000 a year could be argued as a competitive wage if measured against the national average for all jobs, but certainly not if compared to the salaries of other dentists. To know whether a wage is truly competitive, take into account the industry, location, experience level, education level, current labor market conditions and other factors.
- National Careers Service: Job Adverts: Understanding What They Mean
- Monster: Should I Include a Salary Guide in Job Adverts?
- The Chronicle of Higher Education: What is a 'Competitive' Salary?
- U.S. Census Bureau: Table P-10. Age--People (Both Sexes Combined--All Races) by Median and Mean Income: 1974 to 2012
- Bureau of Labor Statistics: Occupational Employment and Wages, May 2013 29-1021 Dentists, General
- Monster: How to Determine a Job's Market Value
- Photo Credit AndreyPopov/iStock/Getty Images
What Is the Definition of a Salaried Worker?
In corporate America, there is a huge designation between different types of employees. Most entry- and line level-workers are paid an hourly...
What Is Commission Salary?
Commission salary is the money paid to you when you sell a product or service for a company. Instead of paying you...
Competitive Wages Vs. Minimum Wages
Minimum and competitive wages are compared by organizations to examine what is needed to successfully run a business, attract employees and meet...
What Does DOE Mean in Salary Terms?
DOE in salary terms means "depends on experience." Many employers choose not to disclose the salary or wage of a position until...
What is a Compensation Survey?
A compensation survey is a general overview of compensation and trends. The National Compensation Survey (NCS), published annually by the Bureau of...
How to Set a Competitive Salary
Setting and negotiating salaries is a tricky business. While a highly competitive salary can draw top-notch applicants, offering more than what you...
The Meaning of 'Salary Commensurate With Experience'
Instead of listing a set pay rate in a job ad, employers sometimes specify “salary commensurate with experience,” “salary dependent on experience”...
Advantages & Disadvantages of Competitive Pay Policies
Human resource professionals and management survey the pay rates of competing businesses to determine the competitive rate for employees in the industry....
What Is the Meaning of Gross Salary?
In the business world "gross" refers to an amount before deductions are subtracted. For example, gross revenue refers to income received for...
What Does "Starting Salary" Mean?
Job seekers must consider an employer's starting salary when deciding whether to accept a job offer. Some employers offer varying salaries based...
What Does Salary Pay Mean?
Many job openings are advertised as being compensated by "salary pay." Salary pay usually means that a worker earns a fixed amount...
What Is the Meaning of 'Compensation & Benefits'?
"Compensation" refers to money received for work, such as wages, salaries and tips, while the word "benefits" describes job extras provided by...
What Is Competitive Base Pay?
The concept of base pay ensures that a company compensates its work force at levels in line with market trends, not metrics...
HR Compensation Issues
Of all the disciplines in the human resources field, compensation is one of the most complex. Handling compensation issues requires knowledge of...