Fair Pay In Flux: Navigating Compensation Analysis Amid Economic Shifts

Compensation is a key ingredient in attracting and retaining top talent - and it’s crucial for businesses to not only understand fair and competitive compensation practices, but also to maintain these practices. Kaitlyn (Rajner) Argus , recruitment coordinator at JK Executive Strategies, LLC , shares how hiring managers and business leaders can ensure fair and competitive compensation practices even during economic shifts.?

What are the key indicators or metrics used to assess fair pay within an organization? What types of data are crucial for conducting a comprehensive compensation analysis?

Assessing fair pay within an organization includes key factors such as market and industry salary trends and data, internal pay equity, as well as external economic indicators like inflation. There are also other factors that can contribute to compensation including employee or job location, industry, and size of the organization.?

Understanding the internal and external metrics are key to ensuring not only fair pay, but also attractive pay to ensure organization's find the right candidate.?

What methodologies or tools are commonly used for compensation analysis? Can you discuss any innovative technologies or software that are making a significant impact in this field?

On our team, we use tools like LaborIQ and others to help our clients access data points that can inform their compensation decisions. LaborIQ leverages 18 trillion data points validated against 8.6 million paystubs, providing the different salary ranges for someone who is more junior vs senior, who has a bachelor’s degree vs a master’s degree, from large or small companies and by industry. This also helps clients understand the type of candidate for varying salary levels and levels of experience.?

It’s also extremely important to consider the full compensation package - including healthcare benefits, PTO, schedule and flexibility, as well as other market benefits - when determining the final compensation range for a role. A candidate may value more PTO over a higher salary and that is a conversation that needs to be had with each person to assess their values.?

Questions to consider when factoring how benefits might impact compensation:?

• Is a hybrid or flexible schedule worth more than $ amount to someone??
• What benefits does the candidate need??
• Would there be a buyout for benefits if they do not take benefits??

How important is transparency in compensation practices, especially during economic shifts?

Transparency in compensation practices is more than important, it’s imperative.? Pay transparency builds trust, promotes equity and compliance, improves recruitment and retention, and contributes to better performance management and morale. For employees, compensation that is transparently linked to performance metrics helps to encourage individual goal achievement and alignment to company objectives. Knowing not only what they’re working towards but also the why promotes greater focus on meeting those goals and creates a clear criteria for compensation decisions supported by objective performance assessments and feedback.?

How effective are these tools in adapting to rapid economic changes?

Specifically for LaborIQ, the reports we run update every time we open them, so they are consistently checking and validating data. In regards to inflation, there can be a variety of outcomes including salary freezes, reduced bonuses or a shift to performance-based pay, or hiring freezes. It’s important to consider options that will help retain employees.?

Outside of the data, I think it’s important to also ask your employees about their preferences and values to help determine what might make a difference for them in these situations. For example, if bonuses aren’t an option or are reduced, can an organization offer other perks like reduced hours or remote work?

What measures can companies take to maintain fair pay during economic downturns?

1. Transparency is key - create clear policies to maintain consistency and keep employees informed about the company’s financial well-being.
2. Benchmarking - compare salaries against industry standards and trends, as well as geographic areas to ensure you remain competitive and fair.?

What are your predictions for the future of compensation analysis amid ongoing economic shifts?

I think a shift to more personalized compensation packages will be a focus in the future. This will allow companies to meet each person’s needs and also demonstrate to each employee that the company cares and wants to invest in their success. Compensation isn’t a “one size fits all” solution.

Data-driven strategies will be the new norm and companies will establish processes to ensure continuity of fair compensation - and this is especially important as companies prep for times of economic uncertainty and prosperity. By leveraging technology and integrating compensation with broader employee engagement and corporate responsibility efforts, businesses can ride out economic changes while keeping their teams motivated and loyal.

Are you tired of guesswork when it comes to compensating top talent? Book a discovery call with our team today and unlock the power of data-driven decision-making.?

JK Executive Strategies | jkexec.com

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