Compensation Analysis and Structure Development
Formal compensation programs attract and retain talent, motivate and engage employees, ensures fairness, equity and legal compliance. We provide the following:
- Job Analysis & Evaluation: Conduct job analysis to understand the responsibilities, requirements, and value of each position within the organization. Use job evaluation methods such as job ranking, job grading, or point factor analysis to assess the relative worth of different jobs based on factors like skills, knowledge, responsibility, and working conditions.
- Market Pricing: Benchmark your compensation levels against comparable organizations in your industry and geographic location. Compare job roles, responsibilities, and qualifications to determine competitive pay ranges for each position.
- Structure Design: Based on your market pricing analysis and internal job evaluations, develop salary structures that define the pay range for each job level or grade within the organization. Consider factors such as experience, performance, and tenure when determining where individual employees fall within the salary range.
- Pay equity analysis: Start by analyzing your organization's pay practices to identify any disparities based on gender, race, or other protected characteristics. Compare the compensation of employees who perform similar work or hold similar positions, accounting for factors such as job title, level of responsibility, experience, education, and performance.
- Review Hiring and Promotion Practices: If pay disparities are identified, investigate the underlying reasons for these gaps.
- Establish Pay Policies: Develop clear and consistent pay policies and guidelines that govern how compensation decisions are made within the organization. This includes policies on merit increases, promotions, adjustments for cost-of-living or market changes, and handling exceptions.
- Implementation: Roll out the new compensation structure to employees, managers, and HR staff. Provide training and support to ensure that everyone understands how to use the new structure effectively and fairly.
- Compliance: Ensure that your compensation practices comply with relevant laws and regulations, such as the Fair Labor Standards Act (FLSA), Equal Pay Act, and state and local wage laws. Regularly review and update your practices to remain compliant with changing legal requirements.
- Training & Education: Offer training and education programs to raise awareness among employees, managers, and HR staff about pay equity issues, unconscious bias, and the importance of fair and equitable compensation practices. Provide tools and resources to help employees understand how their pay is determined and what steps they can take if they believe they are experiencing pay inequity