As a recruiter, I often work with hiring managers to build compensation packages, and I always recommend we turn to fresh external data. Internal metrics from even a couple of years back tend to be dated and stale. The reason is simple: employed people don't keep their thumb on the market the way unemployed or transitioning workers do. They're more likely to assume they are receiving a competitive salary, even if outside data shows they're behind the curve. This is especially true now. During the last few years salaries have exploded unexpectedly due to a tight hiring market. So, the first thing I do is run surveys of other companies and job postings, to ensure that we're offering the right salary. Analyzing fresh external data takes some extra time, but it allows us to make offers that guarantee top talent and strong retention rates.