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How do you conduct a wage analysis?
Step 1: Determine the Organization's Compensation Philosophy. Step 2: Conduct a Job Analysis. Step 3: Group into Job Families. Step 4: Rank Positions Using a Job Evaluation Method. Step 5: Conduct Market Research. Step 6: Create Job Grades. Step 7: Create a Salary Range Based on Research.
How do you conduct a pay equity analysis?
Plan Ahead: Set Goals, Get Buy-in and Put the Right Team in Place. Examine Your Pay Practices and Policies. Collect the Relevant Data. Determine Which Employees Perform Comparable Work. Analyze the Data. Assess Whether Differences are Justified Under the Law. Take Corrective Actions to Remediate Pay Disparities.
What is a pay equity study?
A pay equity study compares employees who previously worked in areas with different costs of living or in different countries. In some cases, demoted employees will be compared with others in the same job or grade.
What is a pay analysis?
The analysis is a way of understanding whether pay at your organization is influenced by factors you want (e.g., type of job, location) or those you don't want (e.g., gender, race/ethnicity).
How do you analyze equal pay?
Decide the scope of the audit. Determine where people are doing equal work. Collect and compare pay data. Establish the causes and any justifications for significant pay gaps. Develop an equal pay action plan.
How do you conduct a salary benchmarking exercise?
Select your salary data sources. Apply your compensation philosophy to the data. Determine pay grades. Handle hot jobs or range-busters.
How do you conduct a competitive salary analysis?
Review your company's current pay rates. Develop detailed job descriptions. Learn to understand labor-market survey statistics. Select surveys for your type of business.
Why salary benchmarking is important?
Overall, salary benchmarking gives an impartial and accurate idea of pay information to help businesses make informed and effective remuneration decisions, while at the same time accounting for variations that need to be considered.
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