A Guide to Compensation Analysis

Analytics in HR

As an example, Slack traditionally compensated employees based on localized benchmarks in their New York and San Francisco offices. Salary benchmarks provide data points, whether it is worth it or not to pay an employee above the average salary.

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In addition, your organization could also lose out on customers or investors, as more and more companies are requiring diversity benchmarks to be met before they work with or invest in a business. Compa-ratio, which is the ratio of an employee’s or group of employee’s pay to the pay-level midpoint for a given role, is incredibly useful for evaluating how relatively well-paid someone is and whether there is a gender- or minority-based pay disparity in your organization.


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How to structure employee compensation


Knowing what each job entails and its value to your company helps you benchmark salaries more effectively. There are two ways companies can create their compensation plans for base salary: Benchmarking (or market pricing) where each job is assigned an individual salary range based on market trends. Here are both approaches with examples and how you can combine them: Benchmarking. Benchmarking helps make your salaries more competitive.

A Full Guide to Compensation and Benefits

Digital HR Tech

Of course, because compensation and benefits can vary across companies and geographic regions, it’s important to benchmark your programs to ensure you’re maximizing the benefits from your programs. Each range has a mid-point, which you may hear as a compa-ratio. If you have a compa-ratio of 100 percent, that means you are at the midpoint of the salary range.

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If there is a clear difference in scale or compa ratios, then it is clear there is a bias. We also deliver benchmarks for comparisons relative to the 7 million employees in our database. If there is a clear difference in scale or compa ratios, then it is clear there is a bias. Organizations need to take both a macro and micro look at their pay practices to understand if they are fairly compensating their employees.

What’s Your Most Useful Metric? More Results of Our HR Metrics Survey

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of respondents keep metrics relating to compensation, with large percentages of them tracking compensation by internal and external pay equity as well as pay vs. midpoints (or compa-ratio). Regional and industry benchmarking. In yesterday’s Advisor , we shared some of the results of our nationwide survey on HR metrics. Today, more of our findings, including measures of turnover, compensation, and training.

HR TechStack – Applicant Tracking Systems


The core capabilities of the solution include human resources management, payroll, benefits, talent management, compliance, time and labor management and analytics and benchmarking. Compas for Staffing. COMPAS was originally developed as a simple Applicant Tracking System by a San Francisco based recruiting team that just couldn’t find the recruiting and staffing right tools and technologies they needed in today’s market. Application Tracking Software Definition.

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Market benchmarks: Apony also sees organizations returning to market benchmarks, (compa-ratio or position in range), to set guidelines which take into account the relationship between the salary of an employee and the pay range for that employee. As companies increasingly break free from the perceived tyranny of traditional yearly employee performance ratings, one of the biggest challenges is figuring how to pay people for their accomplishments.

HR TechStack – Onboarding Softwares


Compas ATS. For Staffing and Human Resource professionals who know that hiring great talent is a vital part of the organizations success, COMPAS is a recruiting platform that uses predictive analytics to improve recruiting performance. Unlike old recruiting platforms COMPAS has transformed the conventional Applicant Tracking & Customer Relationship software to automate tasks and provide talent recommendations. HR Onboarding Software Definition.