A "competitive salary" refers to a compensation package offered by an employer that is in line with or compares favorably to the salaries or wages paid for similar positions in the same industry, region, and job market. In other words, a competitive salary is one that is on par with what other employers are offering for similar roles and responsibilities.
Employers often aim to offer competitive salaries to attract and retain talented employees. When a salary is considered competitive, it is typically seen as fair and attractive to potential candidates, and it helps the employer remain competitive in the labor market. Competitive salaries can vary widely depending on factors such as the industry, location, level of experience, and the specific demands of the job.
To determine what constitutes a competitive salary for a particular position, employers often conduct market research to understand the prevailing compensation rates for similar roles in their industry and geographic area. This research helps them establish salary ranges that are competitive and reflective of the current job market conditions.
Candidates, on the other hand, may also conduct research to assess whether a job offer includes a competitive salary. They may compare the offer to industry benchmarks and the cost of living in the area to determine whether it meets their financial expectations and requirements.