Sample Competitive Positioning Statement

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Document Title	Competitive Positioning Statement for <Company Name>
Document Type	Competitive Positioning Statement
Category	Foundational & Strategic
Version	<Version Number>
Effective Date	<Effective Date: DD MMM YYYY>
Next Review Date	<Review Date: DD MMM YYYY>
Document Owner	<Owner: Total Rewards COE>
Primary Contributors	<Names and Functions>
Approver(s)	<Approver Title(s): e.g., CHRO, CFO, Compensation Committee>
Geographical Scope	<Global or Specific Regions/Countries>
Confidentiality	Internal Use Only

Purpose and Objectives

The purpose of this Competitive Positioning Statement is to define how <Company Name> positions cash compensation, equity, and benefits relative to external labor markets. This document guides decisions on pay levels, structures, and market alignment to ensure fair, competitive, and fiscally responsible pay practices that support attraction, engagement, and retention.

Objectives:

• Establish clear market positioning targets for base pay, incentives, equity, and benefits
• Provide consistent methodology for market benchmarking, data selection, and data aging
• Define geographic pay strategy and application of differentials
• Guide salary structure design and pay progression decisions
• Clarify governance, roles, decision rights, and review cadences
• Mitigate compliance risk and support pay equity
• Enable transparent, employee-friendly communication on how pay is set at <Company Name>

Scope and Applicability

In Scope

• All regular employees of <Company Name> in <Geographies: e.g., North America, EMEA, APAC>
• Base salary, short-term incentives, long-term incentives, allowances, and benefits positioning
• Global and local salary structures, geographic differentials, and currency conversion practices
• Executive, professional, sales, technical, and hourly job families
• Company-funded benefits positioning relative to market norms

Out of Scope

• Contingent workers, interns, and contractors
• Country-specific statutory benefits beyond acknowledging legal compliance
• Individual employment agreements and unique legacy arrangements
• One-time retention programs and extraordinary adjustments outside standard cycles

Applicability

• This statement applies to <Company Name> and fully owned subsidiaries. Joint ventures and acquisitions follow this statement unless superseded by transition plans approved by <Approver Title>.

Guiding Principles and Philosophy

• Market-relevant: Align pay with the external labor market where we compete for talent, not solely the product market.
• Performance-differentiated: Reward higher performance and critical skills with higher positioning within established ranges.
• Equity-minded: Embed pay equity, transparency, and compliance in decisions; conduct regular pay equity reviews.
• Simple and scalable: Use clear methodologies that are repeatable across regions and business units.
• Sustainable: Balance competitiveness with affordability and long-term financial health.
• Employee-centric: Communicate our approach in plain language and provide opportunities for questions and feedback.

Market Definition and Peer Group Selection

Peer Group Construction

• Define a primary market peer set based on:
  • Talent competitors for similar skills and job content
  • Industry relevance: <Industry Sector(s)>
  • Company size: <Revenue Range>, <Headcount Range>
  • Growth profile: <Stage: startup, growth, mature>
  • Geography and labor market overlap
• Use a blended approach combining survey data from <Vendor Name> and custom peer data where available.

Job Matching Standards

• Match based on job content, scope, and level, not titles.
• Use <Company Name> job architecture and leveling framework to align with survey levels.
• When no direct match exists:
  • Use closest match based on responsibilities and scope
  • Consider aggregation of similar roles
  • Apply leveling adjustments using survey level differentials
  • Avoid using incumbent-reported pay as a proxy for market unless calibrated

Labor Market Definition by Segment

• Executives: national or regional market within <Country or Region> with peer set based on industry and size
• Corporate functions: national or metropolitan statistical area market depending on role and location strategy
• Technical and R&D: national market with premium positioning for critical skills
• Sales: market varies by sales motion; use sales-specific surveys and on-target earnings comparisons
• Hourly and Operations: local market by site with city or metro-specific data

Market Data Sources and Methodology

Survey Selection Criteria

• Prefer multi-employer, professionally validated surveys from <Vendor Name>, <Vendor Name>, and <Vendor Name>
• Require minimum participant count of <Number> per job match for data reliability
• Use industry and revenue cuts aligned with <Company Name> profile
• For niche skills, supplement with targeted industry studies or third-party analytics

Data Aging and Effective Dates

• Use a common market reference date: <Market Reference Date: DD MMM YYYY>
• Apply aging factor to all survey data to align with the reference date
• Standard aging formula:
  • Aged Market Rate = Survey Rate x (1 + Annual Movement Rate)^(Months/12)
  • Default annual movement rate: <Percentage: e.g., 3.0% to 4.0%>
  • Example: If Survey Rate = <Amount>, Annual Movement = 3.5%, Months = 6, then Aged Rate = <Amount> x (1.035)^(0.5)

Currency Conversion

• Convert to pay currency of record using <FX Source Name> monthly average rates as of <Reference Month/Year>
• For high-inflation countries, review quarterly and consider inflators aligned with local practices

Data Aggregation and Weighting

• Use the median as primary reference unless otherwise specified
• When consolidating multiple surveys:
  • Apply weights based on relevance and sample size
  • Example: <Vendor A> 50%, <Vendor B> 30%, <Vendor C> 20%
• Remove outliers and ensure at least <Number> matches at target scope before finalizing

Matching Integrity and Documentation

• Maintain match documentation: survey job code, survey title, level, scope notes, and data cut used
• Require second reviewer sign-off for critical roles and executive matches

Review Cycle

• Comprehensive market refresh annually in <Month> aligned to <Company Name> merit cycle
• Mid-year pulse check in <Month> for hot skills, high-inflation locations, and critical roles

Competitive Positioning Targets

Anchors and Percentiles

• Base Salary:
  • Core market target: 50th percentile (P50) of market
  • Critical skills and scarce roles: 60th to 65th percentile (P60–P65)
  • Early career and pipeline roles: 45th to 50th percentile (P45–P50) with accelerated progression opportunities
• Short-Term Incentive (STI):
  • Target total cash positioning: 50th percentile for most roles; up to 60th percentile for pivotal roles
• Long-Term Incentive (LTI) / Equity:
  • Target grant values at 50th percentile for eligible roles; up to 65th percentile for critical technical and leadership roles
• Benefits:
  • Position employer-paid benefits around market median with focus on perceived value and local competitiveness

Segment-Specific Targets Table

Segment	Base Salary Target	Total Cash Target	LTI/Equity Target	Notes
Executives	P50 base with pay-at-risk above market median	P50–P60 total cash	P50–P65	Align with shareholder interests; Committee oversight
Technical Critical Skills	P60–P65	P55–P60	P55–P65	Premium reflects scarcity and retention risk
Core Professional	P50	P50	P50	Standard approach; pay progression through performance
Early Career	P45–P50	P45–P50	N/A or Entry equity at P50	Offer growth and development pathways
Hourly/Operations	Local P50	Local P50	N/A	Consider shift and site premiums
Sales	Market P50 OTE	P50 OTE, pay mix aligned to role	N/A or role-specific awards	Use sales surveys and OTE benchmarking

Geographic Pay Strategy and Differentials

Philosophy

• Pay to the market of the work location. For fully remote employees, use assigned work location or an established remote market policy anchored to <Geo Reference Market: e.g., National P50> with location-based differentials.

Geographic Differential Framework

• Establish location tiers based on cost and pay levels:
  • Tier 1: High-cost metros (e.g., <City A>, <City B>) at 100% of reference market
  • Tier 2: Above-average cost metros at 90% to 95%
  • Tier 3: Average markets at 85% to 90%
  • Tier 4: Low-cost markets at 75% to 85%
• Differentiate by job family where data show materially different spreads (e.g., software engineering vs general administration).

Remote Work Considerations

• For employees moving locations, adjust pay when the new location differs by <Percentage> or more from current tier; provide notice period of <Number> days.
• For cross-border remote work, follow local legal requirements, tax implications, and currency policies.

Salary Structure and Range Design

Structure Type

• Global job architecture with regionally relevant structures:
  • Professional and management grades: global reference with geographic differentials applied
  • Hourly structures: local market-based ranges
  • Sales roles: OTE-based ranges with clear pay mix

Range Design Parameters

• Example parameters for professional grades:
  • Range spreads: 40% to 60% from minimum to maximum
  • Midpoint progression between adjacent grades: 10% to 12%
  • Compa-ratio management: target 0.95 to 1.05 for sustained performance
• Example parameters for hourly grades:
  • Range spreads: 20% to 35%
  • Midpoint progression: 8% to 10%

Sample Range Design Table

Grade	Min	Mid	Max	Range Spread	Midpoint Progression
G7	<Amount>	<Amount>	<Amount>	50%	12%
G6	<Amount>	<Amount>	<Amount>	50%	11%
G5	<Amount>	<Amount>	<Amount>	45%	10%

Range Creation Method

• Build midpoints at target percentile of market composite per grade
• Derive minimum and maximum using agreed spreads
• Validate overlaps between adjacent ranges to ensure career progression and pay equity
• Update ranges annually aligned with market movement and financial plan

Managing to Market and Range

• New hires: position between 0.85 and 1.00 compa-ratio for early career; up to 1.10 for scarce skills with approval
• Sustained high performers: allow movement to 1.05–1.15 over time, subject to budget and internal equity
• Over-range pay: manage through lump-sum awards and development plans

Positioning for Variable Pay

Short-Term Incentive (STI)

• Define target award opportunities by grade and role based on market P50
• Calibrate plan leverage to deliver total cash at target market positioning for expected performance
• Payouts range from 0% to <Percentage> of target based on corporate, business unit, and individual results

Long-Term Incentive (LTI) and Equity

• Eligibility: <Grade Threshold> and above, or roles defined as critical by <Executive Committee>
• Vehicle mix examples:
  • 50% performance-based, 30% RSUs, 20% stock options
  • Vesting schedules comply with <Country> requirements and plan rules
• Grant sizing anchored to P50 market values with differentiation for top talent

Sales Compensation Positioning

• Benchmark On-Target Earnings (OTE) and pay mix by role type (e.g., 60/40, 70/30)
• Set quotas and accelerators to ensure market-competitive earnings at target performance
• Use role-specific surveys and data from <Vendor Name>

Benefits Positioning

• Target employer cost at market median while emphasizing programs that drive wellbeing and retention
• Align offerings with local market norms and statutory requirements
• Prioritize benefits valued by employees (e.g., health coverage, retirement, paid leave, mental health support)
• Conduct biannual benchmarking of employer-paid benefits through <Vendor Name>

Total Rewards Mix Targets

Illustrative Mix by Segment

Segment	Base	STI	LTI/Equity	Benefits
Executives	40%–50%	20%–25%	20%–35%	5%–10%
Technical Critical	60%–70%	10%–15%	10%–25%	5%–10%
Core Professional	70%–80%	10%–15%	0%–10%	5%–10%
Sales OTE	50%–70% base within OTE	30%–50% incentive within OTE	0%–10%	5%–10%
Hourly	85%–90%	0%–5%	0%	10%–15%

Offer, Hiring, and Premium Practices

• Offers should reflect prior experience, internal equity, and market rate for the work location
• Guidelines:
  • Standard offers: compa-ratio 0.85–1.00
  • Scarce skills and urgent needs: up to compa-ratio 1.10 with <Approver Title> approval
  • Sign-on bonuses: used to address forfeited awards; repay if voluntary separation within <Number> months
  • Shift, on-call, and location premiums applied per local policy and market

Pay Progression, Merit, and Promotions

Annual Merit Cycle Positioning

• Align overall salary budget to market movement and affordability (<Percentage> of payroll)
• Use a merit matrix that differentiates by performance and compa-ratio

Illustrative Merit Matrix (Guideline)

Performance Rating	Compa-Ratio < 0.90	0.90–1.00	1.01–1.10	> 1.10
Far Exceeds	<Percentage: e.g., 6.0%–7.0%>	<Percentage: e.g., 5.0%–6.0%>	<Percentage: e.g., 3.5%–4.5%>	<Percentage: e.g., 2.0%–3.0%>
Exceeds	<Percentage: e.g., 5.0%–6.0%>	<Percentage: e.g., 4.0%–5.0%>	<Percentage: e.g., 3.0%–4.0%>	<Percentage: e.g., 1.5%–2.5%>
Meets	<Percentage: e.g., 3.5%–4.5%>	<Percentage: e.g., 3.0%–4.0%>	<Percentage: e.g., 2.0%–3.0%>	<Percentage: e.g., 0%–1.5%>
Below	<Percentage: e.g., 0%–1.0%>	<Percentage: e.g., 0%–1.0%>	<Percentage: e.g., 0%>	<Percentage: e.g., 0%>

Promotions and Adjustments

• Promotion increases guided by differential to new grade midpoint and internal equity
• Typical promotion guidelines:
  • One-grade promotion: <Percentage: e.g., 8%–12%>
  • Two-grade promotion: <Percentage: e.g., 12%–18%>
• Mid-year market adjustments prioritized for critical retention risks and pay equity outcomes
• Document rationale for all adjustments and obtain required approvals

Governance, Roles, and Responsibilities

Decision Rights Matrix (Summary)

• Total Rewards COE:
  • Own methodology, structures, and annual market refresh
  • Validate survey matches and approve exceptions to targets
  • Report outcomes to <Executive Team> and <Compensation Committee>
• HR Business Partners:
  • Advise leaders on application of this statement
  • Ensure internal equity and documentation
• Business Leaders:
  • Make pay decisions within approved budgets and guidelines
  • Identify critical roles and skill premiums with COE
• Finance:
  • Confirm affordability, budget, and financial plan alignment
  • Provide cost modeling for proposed changes
• Legal/Compliance:
  • Monitor legal requirements and pay transparency laws
  • Review plan documents and country addenda
• Compensation Committee/Board (where applicable):
  • Approve executive compensation philosophy and LTI framework
  • Oversee risk and alignment with company strategy

Escalation Path

1. HRBP consults Total Rewards COE for guidance
2. COE reviews data and determines recommendation
3. If outside policy or budget, escalate to <Approver Title>
4. For executive roles, escalate to <Compensation Committee>

Implementation Guidelines

Annual Cycle Timeline

1. Market data collection and validation: <Month> to <Month>
2. Data aging, FX conversion, and consolidation: <Month>
3. Structure updates and modeling: <Month>
4. Governance reviews and approvals: <Month>
5. Manager training and tool updates: <Month>
6. Employee communications and launch: <Month>

Step-by-Step Implementation

1. Confirm scope, surveys, and peer cuts with COE and HRBPs
2. Complete job matching and document mapping
3. Age and convert data to reference date and currency
4. Build market composites and validate outliers
5. Set or adjust range midpoints and spreads per philosophy
6. Refresh geographic differentials using latest data
7. Recalibrate STI targets and LTI grant guidelines to maintain total compensation positioning
8. Model cost and equity impacts with Finance
9. Secure approvals per governance
10. Load updates into HRIS/Compensation systems and test
11. Train managers and HR on changes and rationale
12. Monitor outcomes and adjust as needed

Tools and Systems

• HRIS: <System Name>
• Compensation Planning: <Tool Name>
• Survey Data Platform: <Vendor Name>
• Analytics and reporting: <Tool Name>

Risk, Compliance, and Legal Considerations

• Pay transparency laws: ensure compliant posting of pay ranges where required in <Country/State>
• Equal pay and non-discrimination: conduct annual pay equity analyses controlling for legitimate factors
• Data privacy: manage employee and survey data per <Country> data protection laws
• Works councils and unions: consult as required in <Country> for structural changes
• Tax and securities laws for equity: comply with <Country> regulations and filing requirements
• Document retention: maintain salary structure and market documentation for <Number> years

Metrics and Success Criteria

• External competitiveness:
  • Percentage of critical roles at or above target percentile
  • Pay mix alignment to target ranges
• Internal equity:
  • Reduction in unexplained pay gaps across comparable roles
• Talent outcomes:
  • Offer acceptance rate vs. market benchmarks
  • Critical skill turnover rate trend
• Financial stewardship:
  • Merit and adjustment spend vs. budget
  • LTI burn rate and overhang targets
• Process effectiveness:
  • On-time cycle completion
  • Manager and employee understanding (survey scores)

Review, Maintenance, and Approval

• Effective Date: <Date>
• Review Frequency: Annual, with interim checks for high inflation or market shifts
• Change Log Process:
  • Total Rewards COE maintains version history
  • Material changes require <Approver Title> approval
  • Executive compensation changes require <Compensation Committee> approval

Approval Record

Role	Name	Signature	Date
CHRO	<Name>	<Signature or Approval ID>	<Date>
CFO	<Name>	<Signature or Approval ID>	<Date>
Compensation Committee Chair	<Name>	<Signature or Approval ID>	<Date>

Exceptions and Variances

• Any deviation from this statement requires a documented business rationale and approval from <Approver Title>
• Temporary market premiums for hot skills should:
  • Be time-bound (e.g., 12 months)
  • Be reviewed quarterly
  • Not be baked into base pay without COE approval

Country and Regional Considerations

• Apply country-specific addenda where statutory benefits, pay frequencies, or market dynamics require deviation
• For high-inflation countries, consider more frequent structure updates and off-cycle adjustments
• Where collective bargaining agreements exist, align competitive positioning with negotiated terms

Documentation and Audit

• Maintain:
  • Survey matching logs
  • Aging and FX conversion files
  • Structure build workbooks
  • Approval records and communications
• Conduct annual internal audit of compliance to this statement and report findings to <Executive Team>

Glossary

• Market Percentile: The point in a distribution where a given percentage of observations fall below it (e.g., P50 is the median).
• Compa-Ratio: Employee salary divided by the range midpoint; used to gauge position in range.
• Range Spread: Percentage difference between range minimum and maximum.
• Midpoint Progression: Percentage increase in midpoints between adjacent grades.
• OTE (On-Target Earnings): Base salary plus target incentive for sales roles.
• LTI: Long-term incentive, typically equity-based awards such as RSUs, PSUs, or options.
• STI: Short-term incentive, typically an annual bonus plan.
• Geographic Differential: Adjustment to pay levels to reflect local market rates.
• Burn Rate: Annual equity granted expressed as a percentage of shares outstanding.
• Overhang: Total potential dilutive effect of all outstanding and future equity awards.
• Hot Skills Premium: Temporary or ongoing premium for scarce or critical skills.
• Pay-at-Risk: Portion of compensation variable based on performance outcomes.

Frequently Asked Questions for HR and Managers

How do we select the right market for a role?

• Use the labor market where we compete for talent. For remote roles, default to the assigned work location policy. When in doubt, consult Total Rewards.

What if survey data conflicts across sources?

• Use the weighted composite. If significant variance persists, investigate job match quality, sample size, and data cuts.

When can we hire above midpoint?

• For scarce skills, exceptional experience, or urgent business needs, with documented rationale and pre-approval.

How often are ranges updated?

• Annually, with interim exceptions for high inflation, market disruptions, or critical talent needs.

How does this relate to pay equity?

• Market positioning is applied consistently and combined with pay equity reviews to address unexplained gaps.

Communication to Employees and Managers

The way <Company Name> sets pay is designed to be fair, competitive, and easy to understand. We compare our jobs to the outside labor market where we hire talent with similar skills and responsibilities. This means we use independent compensation surveys from trusted sources like <Vendor Name> to understand what other employers pay for comparable roles. We then set our salary ranges so that most roles are anchored around the market median, also known as the 50th percentile. For jobs that are especially critical or hard to find, we may target slightly above the median to stay competitive.

Your individual pay depends on several factors: your skills and experience, how your role matches the market, your performance over time, and where you work. Our ranges have a minimum, a midpoint, and a maximum. Employees who are newer to a role or developing skills may be closer to the minimum, while those with deep experience and strong sustained performance may move toward or above the midpoint over time. We regularly review ranges each year to keep them aligned with the market.

Location matters too. Pay can vary by city or region because labor markets differ. We use a location-based approach so that a role in a high-cost metro may have a higher range than the same role in a lower-cost area. If you move to a different location, we will review your pay to keep it aligned with the new market and share any changes with advance notice.

Your total compensation includes more than base pay. For eligible roles, we offer short-term incentives that reward results and, in some cases, long-term incentives such as equity that align your interests with the company’s long-term success. Our benefits aim to support your wellbeing and financial security and are benchmarked to market norms in each country where we operate.

During the annual review cycle, managers look at your performance, your position in the salary range, and the market for your role. We use guidelines to ensure increases are fair and consistent. High performance can lead to bigger increases over time, and promotions come with range and level changes that reflect higher scope and responsibility.

We are committed to transparency and equity. We comply with local pay transparency laws and conduct pay equity analyses to address unexplained gaps. If you have questions about how your pay is determined, please talk with your manager or HR partner. They can explain how your role maps to the market, where you sit within the range, and how you can progress. We want you to feel confident that your contributions are recognized and that your pay is aligned to the market in a way that supports your growth at <Company Name>.

If you receive an offer for a role at <Company Name>, it will reflect the market rate for the work location, your relevant experience, and internal equity with peers in similar roles. From there, your pay can grow through performance, skill development, and career progression. Our goal is to provide a total rewards package that is competitive, sustainable, and meaningful to you and your family.

For more information about our salary ranges, incentives, and benefits, you can review the resources provided by HR or contact <HR Contact Email>. We appreciate your contributions and are committed to maintaining a fair, market-based approach to compensation.

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Document Information:

• Document Type: Competitive Positioning Statement
• Category: Foundational & Strategic
• Generated: August 22, 2025
• Status: Sample Template
• Next Review: <Insert Review Date>

Usage Instructions:

1. Replace all text in angle brackets < > with your company-specific information
2. Review all sections for applicability to your organization
3. Customize content to reflect your company's policies and local regulations
4. Have legal and HR leadership review before implementation
5. Update document header with your company's version control information
6. At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.