An example: “Employees with similar jobs, performance, skill sets, and experience within a company are paid similarly. This includes salary, benefits, and other forms of rewards.”

Let’s look at that definition in more detail.

“Employees with similar jobs,...

· Similar jobs can be further defined as (a) same job title, (b) same job family and career level, and/or (c) same job family and pay grade.

· Of course, an employer’s job architecture may provide other ways to create comparator groups.

“...performance, skill sets, and experience within a company...”

· Employers typically consider factors like experience, skill sets, education, training, seniority, performance, quantity/quality of production, and/or work location

· So, having these factors as fields in your HR system is helpful to ensure consistency in your pay decisions.

· And if you want to go further include the things you would NOT want to make pay decisions on like race/ethnicity, gender, and other protected class factors. That way you can do a pay equity analysis to determine if any of these things are influencing your decisions in a discriminatory way.

“...are paid similarly. This includes salary, benefits, and other forms of rewards.”

· This means looking at base pay, bonus, sales commissions, overtime, spot awards, stock, paid time off, sign on bonuses, etc. in comparison to employees with similar jobs, performance, skill sets, experience and other factors like those above.

· Look closer at reward differences that are plus/minus 5% from the average.

If you want to win the war for talent, determine if you are paying equitably and fairly based on your internal equity definition. Then communicate to your employees your results and progress year over year. This is also an aspect of your pay transparency journey.

If you need help, we should talk.

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