We offer a variety of options and services to help you develop a productive compensation structure.
Market Benchmarking/Market Pricing
Is your current compensation in alignment with the market and your competitors? Let us review your strategy, compile valuable, reliable market data, and create a pay-grade structure and meaningful plan for moving forward.
Exempt or Non-Exempt?
Using detailed job descriptions, our Fair Labor Standards Act (FLSA) analysis will determine the appropriate exempt or non-exempt job classifications according to the FLSA and current state wage and hour laws.
Job Descriptions
Let us analyze job content and review or write job descriptions that are meaningful and useful. We’ll ensure strict adherence to best practices and legal standards.
Performance Management
Bring it all together by effectively communicating to employees the importance of competent performance and its relationship to personal and organizational success. We’ll help you develop a process that reflects your organization’s standards and expectations.
Compensation System Design FAQs
What does “benchmarking” mean in terms of compensation?
Market benchmarking (also called market pricing) is the most popular way to figure out how much employees should get paid. Market benchmarking involves setting pay ranges by matching jobs to published compensation data, and determining the appropriate, market-competitive compensation for the role.
Can I use your compensation services individually, or is it better to combine them into a project?
You can certainly use our compensation services a la carte, but just as a burger is better with fries and a drink, it’s usually a better idea to combine them into a full project. This approach ensures that all components work together seamlessly and are consistent with your organization’s compensation philosophy. It also provides clearer, more actionable recommendations.
What’s included in a full compensation project?
A full compensation project includes a comprehensive market benchmarking analysis of your current job descriptions. Using accurate and reliable compensation data, we determine the market value for each role and build custom pay ranges aligned to your organization’s needs.
We’ll also analyze your payroll data to determine which current pay rates need to be adjusted based on your new pay ranges and your budget realities. We’ll roll all of this up in a written executive report that summarizes findings, recommendations, and next steps.
What compensation data do you use?
We have access to a robust library of wage, salary, and benefits data including reports produced by our internal survey department as well as widely recognized outside resources.
If you have a preferred data source, just let us know! We’ll be happy to discuss it and explore whether it can be integrated into your project.
How long does it typically take to complete a compensation project and what does it cost?
Timeline and cost are primarily driven by the number of job descriptions included in the project. When you reach out for a quote, be ready to share an estimated job count so that we can provide fast and accurate pricing and scheduling information.
What do we need to get started on a project?
In addition to a signed service agreement, we’ll need your current job description for each position. HR Source matches positions to market data based on essential job functions, supervisory responsibilities, knowledge, skill, and ability requirements - not titles alone. If you don’t have current job descriptions, no worries - we can include analyzing jobs and writing job descriptions in our project scope.
Can HR Source help us implement and explain the new pay structure?
Absolutely! We can translate the analysis into action by explaining the data and logic behind pay ranges, identifying priority pay adjustments, and advising on rollout and manager communication. Our goal is to deliver a user-friendly compensation system that your leaders can implement and maintain.
How often should we perform a full compensation project?
We recommend a comprehensive study every three to four years. We’ll also show you how to keep your compensation plan aligned with the market between projects.
Can HR Source help with individual benchmarking requests?
Definitely! Many organizations need off-cycle benchmarking for a job or two between full studies. Consider getting a job benchmarked when you create a new role, restructure a role, or change a role’s responsibilities. This is especially important when hiring gets tougher or candidates are declining offers, which might be a sign that market movement has outpaced your current pay range.
Build an effective compensation system with your HR partner.