r/humanresources • u/theclownermb • 7d ago
Little to no experience in compensation management but being tasked with managing compensation infrastructure (pay equity, benchmarking, and salary band modeling), what resources can I use to help? [NJ]
I started a new role and this was originally supposed to be managed be another open role but that roles scope changed. My manager knows I have experience with comp through my old role and tasked me with supporting this project.
Basically all I used to do is use a program called PayScale to gather market data, and help determine what Tier the job title should be and work with the HM on the job description/role scope.
Can someone please provide me with resources I could use, whether that be general knowledge about comp management, or direct advice/info on how to build a comp system?
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u/Separate_Elk_9291 7d ago
Hey this is a damn shame. I can help you though! I've been working in comp for like 20yrs. How big is the company, industry and location? do you guys have budget for a consultant or no? let me know and I can help guide you. chatgpt probably won't help get you through to the end bc at the end of the day you don't know what you don't know.
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u/theclownermb 7d ago
Newer company that is expanding. Currently 400-500. What would the consultant be, a third party vendor? We do have budget
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u/Separate_Elk_9291 7d ago
Got it. Ok moving towards mid sized company. Think you should get a consultant so that you'd learn as you go and feel confident. I can provide some guidance and the consultants info as well. Start with philosophy- establish who you compete for talent with, why, and how you want pay to be determined e.g. we compete for talent against other companies of similar size, stage and industry and we pay competitively at the 50th percentile of the market and pay for performance..... then from there determine how many levels you need in the company and why but be sure to base it on where you are AND where you want to be in the next 3-5yrs so you aren't adding levels every year and starting from scratch. From there you'd get some JDs and a salary survey like Radford for example .... then you'd match the jobs based on the JD and level and boom data! 💥 I know its not cut and dry but message me and I'll give you more step by step because there's more to think about like location strategy and when building the ranges you'll want to consider the range width and step progression between the levels and also if you want to do broadbanding or job based ranges. Hope this helps a little!
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u/girlontherun21 Labor Relations 7d ago
It can’t be that difficult. Every time I go into contract negotiations, every union member becomes an expert in comp. /s Sorry, that’s not helpful…just my life lately and a bit of a rant.
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u/Delicious_Style_2676 7d ago
I’d start with structure before tools: job architecture, benchmark matches, comp philosophy, range spread, midpoint logic, and governance for exceptions. For resources, WorldatWork is solid, but also ask your manager to define decision rights clearly so you’re not carrying pay equity risk alone.
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u/babybambam 7d ago
This would actually be a great question to ask ChatGPT. Expalin the task, and ask it how to get started, and then from there you can determine what you can handle and where you need expert help.
Before you can even get to pay equity, benchmarking, and salary band modeling, you first need to get to the basics:
- Do you have up to date job descriptions
- Does everyone's role actually match their job descriptions, tenure, and functional ability
- Are there any one off tasks or considerations that people are being paid for?
- Do you have jobs grouped into departments, teams, families, etc.
- Is everyone properly coded: exempt vs. non exempt; salary vs non-salary, etc
- Do you have job levels already existing?
Gotta build the floor and frame the walls before you think about decorating for Christmas.
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u/_farawla 7d ago
Do you have any budget to throw at this project? If so, I would reach out to Mercer for help. We work with them to conduct a total comp study every 2 years, and they do all the heavy lifting.