- 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.
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.