Salary Benchmarking
Salary benchmarking is the process of establishing what the market pays for specific roles in each geography, and using that data to set compensation that is competitive for hiring and retention. Without regular benchmarking, compensation drifts - companies over-pay in some markets and under-pay in others.
The peer group used for benchmarking should match the talent being competed for - for example, benchmarking a senior software engineer role in Bengaluru should reference large US tech companies' India R&D centers and well-funded India tech companies, not just generic national averages.
For the full benchmarking methodology, see Global Salary Benchmarking: How to Set Competitive Pay in Every Market.