Executive Space

Salary increase for military personnel in Spain: a lesson on the importance of salary benchmarking for companies

Written by María Calviño | Mar 3, 2025 8:49:11 AM

The recent announcement by the Spanish Government regarding salary increases for the military has reignited the debate around pay equity and the need for structured salary reviews in any organization. While this raise has been welcomed by many, it has also sparked criticism when compared to other security forces.

From a talent management perspective, this case highlights the importance of designing salary policies using a data-driven and strategic approach, avoiding reactive decisions that could lead to internal inequalities or financial instability.

Salary benchmarking: a strategic tool for companies

To remain competitive and fair, organizations must ensure their pay structures align with market standards. This is where salary benchmarking plays a critical role. This essential HR management tool allows companies to compare salaries with the market and make informed decisions.

Key benefits of salary benchmarking

  • Attract and retain top talent: Competitive salaries prevent the loss of key professionals.
  • Internal equity and employee engagement: Well-structured salary systems enhance job satisfaction and commitment.
  • Budget optimization: Strategic salary adjustments help maintain financial stability.
  • Compliance with labor laws: Salary benchmarking ensures compliance with labor regulations and pay equity standards.

The risks of unplanned salary increases

The military pay raise in Spain also highlights the risks of implementing salary adjustments without proper analysis. Salary increases driven by external pressures can result in:

  • Internal pay gaps: Disproportionate increases for certain roles can cause frustration and demotivation in other departments.
  • Financial instability: Unplanned pay adjustments can put the company’s economic balance at risk.
  • Loss of competitiveness: Revising salaries without benchmarking against the sector can leave companies at a disadvantage in the talent market.


Future-proofing your talent strategy

At Servitalent, more and more companies rely on our salary benchmarking service to design sustainable and competitive compensation strategies. Our methodology provides a precise analysis of industry salary trends, enabling businesses to make informed, strategic decisions.

If your company wants to avoid reactive salary adjustments and ensure its pay structure stays aligned with the market, having accurate and objective data is the first step. Talent management cannot rely on assumptions — it must be built on verified data and well-defined strategies.

 

Does your company base its salary policy on data or on reactive decisions?