It usually starts when you are under resourced.
You don’t have enough time to do all the work that is expected of you, so you do something quick to answer a question. And then you never go back and do the full analysis and implement final decisions made with intention and integrity.
· Instead of assigning the grade to the job, you market price it and then calculate a base pay range around the 50th percentile. Then you share that specific range with the hiring manager or on the job posting.
· Instead of updating the pay grade structure for the next year by doing the external market analysis, you just age it by 3%.
· You don’t have geographic differentials defined and based on market data. You have increased the range spread on your base salary ranges to accommodate what you hear from Talent Acquisition and hiring managers.
· You don’t update the market pricing on all the jobs each year. You only do it one job at a time as you hire to backfill a role.
· The target short-term incentive for each employee depends on what the hiring manager asked for. There is no consistency by job, pay grade, or career level.
· You are constantly explaining why you’ve made exceptions to the normal job titling standards.
· The pay of certain employees has been “grandfathered” and internal equity is not prioritized.
· The number of direct reports varies from zero to more than 10 for those with supervisory titles. You don’t have a standard that is agreed to for the minimum number of direct reports to consider a job a supervisor.
· Instead of doing a thorough pay equity analysis with comparator groups, you do it only on job title. You calculate the average and median for each job title and only look at base pay. You define outliers as those that are 15% or more. Nothing less than that percentage is researched.
· Each country has its own pay grade structure and approach. There is no consistency globally or governance in place.
I could go on and on. These are examples of compensation Band-Aids.
The analysis of your pay and people data is difficult. There is no integrity and standardization of the decision-making processes. Cleaning this up seems like a huge task given the people on your team and competing priorities.
You’re tired, overworked, and burned out. You’re thinking of quiet quitting just to survive. But you talk yourself out of it because you care. You care a lot about doing the right thing.
You wish you had an expert who could help you do the data analysis and develop the recommendations. And then turn that into a presentation you can use with senior leaders that convinces them to approve the necessary changes.
Let’s talk if this is your situation.
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