Summary
This guide provides a comprehensive framework for conducting a compensation analysis within an organization. It outlines the definition of compensation analysis, emphasizing its importance in creating a competitive and equitable pay structure. The document details the steps involved in performing a compensation analysis, starting with defining job roles and gathering internal data, followed by collecting market insights and benchmarking jobs against industry standards. It emphasizes the need to assess internal equity and forecast necessary adjustments based on findings. Additionally, the guide discusses the benefits of regular compensation analysis, including improved employee satisfaction, retention, and overall business performance. A compensation analysis template is included to assist organizations in collecting relevant data. The document also highlights the role of HR technology in streamlining the compensation analysis process, making it easier to manage and visualize compensation data effectively.
