Portfolio Insights The Value of Benchmarking Salaries - and why salary reviews matter
By Gemma Creamer Director, Portfolio Payroll, part of the Portfolio Group
In the UK’s evolving employment landscape, payroll professionals remain in consistently high demand - making regular benchmarking and structured salary reviews an essential part of effective people strategy. Organisations that proactively review and adjust compensation based on reliable benchmarking data not only strengthen retention, but also improve engagement, accuracy, and strategic capability within their payroll teams.
adjustments that protect institutional knowledge and prevent avoidable attrition.
3. Building a Fair and Transparent Pay Structure
Review annually - with mid-year check-ins to stay responsive to inflation and evolving expectations. Consider total reward; including flexibility, benefits, and development. Communicate openly - share how data informs pay decisions to build trust. Act on insights - use benchmarking to plan pay movements, refine structures, and future-proof your reward strategy.
Benchmarking creates a foundation for internal equity. Instead of relying on ad- hoc pay decisions, organisations can build structured salary bands that balance internal consistency with external competitiveness. This fosters fairness, transparency, and clear progression paths within the payroll team; strengthening motivation and trust.
Why Benchmarking Pay Matters
1. Attracting & Retaining Payroll Talent
4. Informing Your Total Reward Strategy
The UK payroll market remains highly competitive. Using trusted data - such as insights from the Portfolio Payroll Salary Guide 2025/26 - helps employers benchmark salaries accurately across regions and seniority levels, ensuring offers reflect real market conditions. Competitive, well-informed pay structures speed up hiring and reinforce your organisation’s reputation as an employer of choice. Retention is equally critical. When payroll professionals feel fairly compensated relative to their peers, engagement and loyalty rise. Regular benchmarking ensures salaries evolve with the market, not fall behind it. 2. Reducing Turnover and Protecting Organisational Knowledge Replacing experienced payroll staff costs time, money, and operational stability. These professionals hold deep knowledge of systems, legislation, and internal processes that can take months to rebuild. Proactive benchmarking helps you identify when pay is slipping below market levels, allowing targeted
The Portfolio Payroll Salary Guide 2025/26 highlights that salary alone no longer defines competitiveness. Benefits such as flexible working, enhanced pensions, professional development, and wellbeing support are increasingly valued by payroll professionals. Benchmarking helps employers position total reward - not just pay - as a key differentiator, even when budgets are tight. 5. Supporting Workforce Planning & Business Strategy Salary benchmarking offers broader business value too. It informs workforce planning, budget forecasting, and strategic decisions about team design and resourcing. Grounding pay reviews in market data ensures decisions are evidence-based and aligned with wider business goals.
Final Thoughts
Benchmarking payroll salaries isn’t simply a compliance exercise - it’s a strategic investment in people and performance. By grounding salary reviews in credible UK market insight, like the Portfolio Payroll Salary Guide 2025/26, organisations can make informed, fair, and forward-looking decisions. A well-benchmarked payroll function doesn’t just reduce turnover - it builds engagement, resilience, and trust across your entire business. Register for your free copy of our Payroll Salary Guide 2025/26 here or contact Gemma & the team to discuss bespoke benchmarking for your payroll team on 0207 247 9455
How to Benchmark Effectively
Use credible UK data - such as the Portfolio Payroll Salary Guide 2025/26, which reflects current regional and sector trends.
Matching exceptional Payroll, Credit Control, HR & Reward, and Procurement talent to leading brands.
Made with FlippingBook - Online magazine maker