It is widely known that organizations should periodically review their salary structures to ensure that their pay is competitive and is comparable to what is offered by other firms in the same industry and budget-size. Many companies do this evaluation by looking at salary surveys.
However, numerous organizations have started to realize that offering competitive salaries may not be enough to attract great candidates and to retain valuable employees. As a result, we have seen an increasing number of clients benchmarking their total compensation packages (instead of just their base salaries). Total compensation packages usually include 401k/403b match, benefits, paid time off, bonuses, variable pay tools, and perks. When conducting a total compensation analysis, companies are able to get a more comprehensive picture of what they offer and where they fall within the market. This practice has allowed many of our clients to think more strategically when it comes to determining pay. It has also shown them how everything that is offered to employees matters when it comes to retaining them as well as attracting valuable candidates.
Many of our non-profit clients have also started to include an internal equity analysis when performing pay studies. An internal equity analysis may include examining your team demographics and ensuring that everyone, no matter their race, age, or gender (among other factors) are paid fairly within your salary structures. This is a very important study, especially for organizations that have a strong commitment to diversity, inclusion, and justice.
Another trend that has been growing is the development of compensation philosophy statements. These statements communicate the objective of compensation programs and how pay decisions are being made. When the philosophy around pay is aligned with the practice, this allows for more transparency and staff engagement within an organization.