Market Pricing Isn’t Just a Math Problem
When organizations begin working on compensation strategy, one of the first questions we hear is: “What should we be paying for this role?”
It’s a reasonable question, and market pricing seems like a straightforward way to answer it. Pull a few salary surveys, average the numbers, and you’re done… right?
Not quite.
At PRJ Consulting, we believe market pricing isn’t just a math problem, it’s a strategic exercise that requires interpretation, context, and alignment with your organization’s values and goals.
What Market Data Can, and Can’t, Tell You
Compensation surveys provide a starting point. They show what similar jobs are being paid across industries, geographies, and organization sizes. But raw data is just that: raw. It doesn’t account for:
The scope of your specific role
The internal equity across your team
Your organization’s budget, mission, and growth stage
The kind of talent you want to attract and retain
That’s why compensation consulting is as much about asking the right questions as it is about calculating numbers.
The Context Behind the Numbers
Here’s what thoughtful market pricing takes into account:
1. Role Scope and Job Content
Two job titles can look identical in a salary survey, but in practice, responsibilities can vary widely. A “Development Manager” at one nonprofit might manage a team and oversee strategy; at another, they might be a solo grant writer.
Good pricing starts with clear job documentation.
2. Internal Equity
What you pay one person impacts how others perceive fairness. If external data suggests a 20% raise for a new hire, how will that affect existing staff in similar roles?
Balancing market data with internal consistency helps you avoid morale issues and pay compression.
3. Strategic Positioning
Not every organization needs to, or can, pay at the 75th percentile. Your compensation philosophy should guide where you choose to be in the market and why. For example:
A mission-driven nonprofit may prioritize generous time off and flexibility.
A growing startup may trade higher salaries for equity or growth opportunities.
There’s no one “right” answer, just the one that fits your context.
The Danger of Data Without Interpretation
Relying on market data without strategic interpretation can lead to:
Overpaying for roles that don’t align with your structure or needs
Underpaying and struggling to hire or retain key talent
Creating inequities that undermine team trust
Copying competitors without understanding what works for you
That’s why we often tell clients: don’t just match the market, understand it.
How PRJ Consulting Brings Market Pricing to Life
At PRJ Consulting, we help organizations turn market data into actionable insights by:
Evaluating job responsibilities and role design
Interpreting survey data with context and nuance
Identifying fair, consistent pay practices
Building salary ranges and structures that support growth and equity
Aligning compensation decisions with broader organizational goals
Our approach blends the numbers with the narrative, because a compensation strategy that works is one that makes sense both on paper and in practice.
Ready to Go Beyond the Numbers?
If you’re navigating compensation decisions and want a partner who understands both the math and the meaning behind market pricing, we’d love to help.
👉 Let’s connect and bring clarity to your compensation strategy.