Conduct a Salary Structure Assessment
Help prevent and address inequities before they transform into bigger problems.
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Contributors
- Chuck Csizmar, Principal, CMC Compensation Group
- Diana Holec, Senior Consultant, Performance, Reward & Talent Consulting, Aon Hewitt
- Ashley Jones, Director, Total Rewards, Lowes Canada
- Syma Khan, Director, Compensation for the HRPA, Peel Chapter
- Ellie Maggio, Managing Director, EMEND Management Consulting Inc.
- Randy Ross, Regional Compensation Specialist, Danfoss Inc.
- Anonymous, National Communications Organization
- Compensation Manager, Professional Services
- Anonymous, National Retail Organization
Your Challenge
- Small merit increase budgets inhibit pay band movement, resulting in very few organizations actually paying according to their target market position.
- Pay inequities can lead to allegations of discrimination or even lawsuits, posing significant risks to organizations.
Our Advice
Critical Insight
A salary structure on paper and a salary structure in practice are two different things – assessments help bridge the gap to ensure that pay is both internally and externally equitable.
Impact and Result
- Identify pain points that could be caused by salary issues to determine the appropriate scope of the salary structure assessment.
- Balance a review of internal and external equity when conducting a salary structure assessment.
- Review salary data to pinpoint potential inequities, then conduct further analysis to determine if adjustments are required.
- Develop a remediation plan to ensure that all unjustifiable inequities are resolved in an appropriate timeframe.
1. Identify pain points and priorities
Identify pain points that are potentially caused by salary issues and determine the scope of the assessment.
2. Review salary data
Assess whether job descriptions need to be updated, confirm target market positioning, review benchmark roles, and gather market data.
3. Identify and address compensation issues
Identify potential pay inequities, determine whether they are justifiable or if action is required, and plan to address all unjustifiable pay inequities.
Guided Implementations
This guided implementation is an eight call advisory process.
Guided Implementation #1 - Identify pain points and priorities
Call #1 - Review the data that needs to be gathered to identify pain points.
Call #2 - Determine the scope of the salary assessment and set goals and metrics to measure success.
Guided Implementation #2 - Review salary data
Call #1 - Examine whether updates are needed to job descriptions, the job worth hierarchy, or the compensation philosophy.
Call #2 - Analyze market data and if pay bands need to be adjusted.
Guided Implementation #3 - Identify and address compensation issues
