Trial lock

This Research is for Members Only

Not a member? Unlock a free sample of our research now!

Already a member?

Sign in now

Total Rewards icon

Conduct a Salary Structure Assessment

Help prevent and address inequities before they transform into bigger problems.

Unlock Sample Research

View Storyboard

Solution Set Storyboard Thumbnail

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.

Research & Tools

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

Call #1 - Explore the results from the Salary Structure Assessment Tool and identify potential inequities.
Call #2 - Identify inequities that are justifiable and those that require adjustments.
Call #3 - Review the remediation plan.
Call #4 - Draft salary administration guidelines and a communication plan.