When you are market pricing jobs you are focused on the details.

How does the employer’s job description compare to the job description in the survey? Is this match as good as it gets or can I do better? What other jobs are available in the salary surveys to compare this employer job to? Do I have a data cut that will be aligned to this employer’s competition for talent?

And after your spreadsheet or market pricing software tool accurately documents the matches, you need to create a final report. Often that report is a one-page summary like the one below for the Executive Leadership Team or ELT.

While this example focuses on the comparison of employee base pay versus market, I’ve also done this for a total cash compensation comparison or a target direct compensation (base + STI + LTI) comparison.

It is critical to get this analysis completed prior to budget planning so you have enough money in the budget for the next fiscal year to do the following:

· Merit increases – assuming you have a pay-for performance philosophy

· Market adjustments – because a 3% merit budget which is the norm in the U.S. is never enough to cover this too

· Pay equity adjustments – assuming you do a pay equity audit annually and that you find someone who is under paid in comparison to their peers

· Incentive adjustments – because it’s important to look at short-term and long-term incentive targets to ensure you are keeping up with the market as well.

And for those of you trying to keep up with the pay transparency and equity laws, this type of analysis is foundational for that compliance effort too.

If you need help, let’s talk. My team and I are looking for more projects to contribute to.

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