COMPENSATION REVIEW

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1. Basic Analyses

This foundational step ensures data integrity and establishes a baseline for analyzing broad compensation trends.

Data Validation: Thoroughly review the data set and screen for logical or structural errors.

Compensation Review: Compare total compensation—including base pay, bonuses, and incentives—across core groupings like job titles, salary/wage grades, and job families.

Placement & Steering Analysis: Conduct analyses to identify potential placement or steering issues.

Problem Framing (if needed): Determine whether identified disparities are compensation-driven, placement-driven, or a combination of both.

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2. Intermediate Analyses

If basic analyses indicate unexplained variances, these analyses focus on more detailed comparative data:

Cohort Analyses: Concentrate on specific cohorts categorized by job title or broader job/pay classifications.

Factor Evaluation: Compare employee pay directly against objective, impact-driven factors such as seniority, relevant experience, and performance ratings to isolate legitimate pay variations.

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3. Advanced Analyses

For deeper systemic analyses, this phase investigates the historical drivers behind pay gaps.

Salary/Annual Pay History Analyses: Review multi-year compensation history for targeted employees.

Salary/Pay Increases: Differentiate and analyze types of pay increases (e.g., merit vs. promotion).

Root-Cause Analyses: Identify whether the source of pay disparities stem from initial pay at hire, subsequent merit and promotion increases, or a compounding effect of both.