CASE STUDY: USING MARKET-BASED COMPENSATION TO INCREASE RETENTION
The Challenge
The client needed to align its compensation system with current market trends and employee expectations, so it could attract and retain strong talent through competitive, fair, and equitable pay.
The Solution: Compensation Study
With HRG’s expertise in compensation consulting, it was prepared to guide the client through a structured, data-driven approach to achieve both internal and external equity in its compensation practices. HRG initiated the project by emphasizing the importance of keeping compensation structures in line with changing market conditions. For the city, it was critical to analyze the competitiveness of its compensation system against both private and public sectors while ensuring that internal equity was maintained.
The engagement began with a detailed kick-off meeting with the city’s leadership. During this meeting, HRG reviewed the client’s current compensation philosophy and policies, then gathered organizational data necessary for market pricing. A thorough review of up to 70 positions was conducted. This included examining job descriptions and evaluating the exemption status of each position under the Fair Labor Standards Act (FLSA). Establishing legal compliance and accurate job representation was a critical part of the analysis.
HRG then market-priced up to 70 benchmark positions, using up to two databases to capture a broad view of compensation trends. This step made certain the city’s pay structure reflected current market conditions, focusing on both private and government sector data.
To confirm the market analysis was geographically relevant, HRG defined the scope of cities comparable to the client. This allowed for a more precise comparison when evaluating compensation levels. Throughout the project, HRG worked closely with the city’s senior leadership and project stakeholders.
The Result
The client compensation study conducted by HRG successfully addressed both external market competitiveness and internal equity, ensuring that the city’s compensation structure was fair, transparent, and aligned with modern standards.
By utilizing current market data and working closely with the client’s leadership, HRG developed a comprehensive compensation framework that supported the city’s goals for attracting and retaining talent. The collaborative process, from reviewing job descriptions to drafting future compensation policies, equipped the client with the tools and insights necessary to maintain a competitive and equitable pay system for years to come.
Start a Conversation with an HRG Consultant
Compensation and incentive planning is complex, so we make the process as simple as possible from start to finish by keeping personal interaction at its core. The first step in planning your organization’s compensation is a conversation with our team. Schedule a call with one of our HRG consultants today, and they will take it from there!