Ever wondered how organizations can develop fair and equitable pay for employees? We’ve got answers!
For some background on this series, please see Installment 1: Overview and Key Steps and Installment 2: Data Collection Begins – Pay Scale.
Wage comparability studies are available for all key sectors (public, private, nonprofit).
A wage comparability study contains external compensation data for various positions. It complements an organization’s internal pay scale.
These studies are used to benchmark salaries, so leaders can determine competitive market wages for their geographic region, type and size of organization, and each position. To maintain the accuracy and relevance of this tool, update the data every 2-3 years.
In our experience this is a time-consuming and detail-oriented task. Whether staff time is used to conduct a salary survey and undertake a wage comparability study, or an organization purchases a ready-made study/survey, there will be costs associated with this exercise.
Purchase wage comparability studies or single position report data
Conduct a wage comparability study
You can develop a custom study by gathering and documenting 4-6 external sources of salary and wage data for each comparable position in your organization.
Tip: Copy your pay scale worksheet (see a sample in Installment 2) and change the column headers to reflect each wage comp data source chosen. Empty the data fields and save the custom template as a tool for future use.
Salary and Wage Data Sources
Here’s a superb article with a lot of resources on compensation from the National Council of Nonprofits.
Check out hrcouncil.ca, which was created by the HR Council for the Nonprofit Sector (HR Council). They offer extensive resources, tools and information about how to improve HR management practices.
Good description of labor market analysis from UC Davis.
The Office of Head Start requires Head Start grantees to conduct wage comparability studies, and they’ve developed a comprehensive guide for the process of comparing employee wages and fringe benefits using employee surveys and external data.
Next week I’ll offer tips on how to analyze all this data in meaningful ways for decision-making.
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